The Circular Flow of Income Model Shows

question 83

Multiple Choice

The circular flow of income model shows:

• A)the flow of output and income within one sector of the economy.
• B)how different sectors of the economy are linked together.
• C)that income is rarely equal to output.
• D)how business firms interact with one another.
• E)how businesses sell their resource services to households.

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Definitions:

Watch and Wait

A strategy where action is delayed, allowing for time to observe and decide the best course of action based on further developments.

Corporate Misconduct

Actions by companies or their representatives that are illegal or unethical, which can harm the reputation and performance of the business.

Personal Responsibility

An individual's obligation to ensure their actions, decisions, and behaviors uphold personal and societal standards.

Sarbanes-Oxley

U.S. federal law enacted in 2002 aimed at protecting investors from fraudulent accounting activities by corporations, requiring enhanced financial disclosures and audits.