The Two Loops in the Circular-Flow Diagram Represent

question 20

Multiple Choice

The two loops in the circular-flow diagram represent

• A)the flow of goods and the flow of services.
• B)the flow of dollars and the flow of financial assets.
• C)the flow of inputs into production processes and the flow of outputs from production processes.
• D)the flows of inputs and outputs and the flow of dollars.

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Definitions:

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation and personal growth.

Humanistic Theory

A psychological perspective that emphasizes individual potential for growth and the importance of self-actualization, empathy, and unconditional positive regard in therapy.

Psychological Health

A condition of good health where a person recognizes their own capabilities, manages everyday stress effectively, contributes positively to society, and maintains productive work.

Positive Psychology

A branch of psychology focused on the study of positive emotions, strengths-based character, and healthy institutions to improve quality of life.