In the Circular-Flow Diagram

question 248

Multiple Choice

In the circular-flow diagram,

• A)taxes flow from households to firms,and transfer payments flow from firms to households.
• B)income payments flow from firms to households,and sales revenue flows from households to firms.
• C)resources flow from firms to households,and goods and services flow from households to firms.
• D)inputs and outputs flow in the same direction as the flow of dollars,from firms to households.

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Definitions:

R&D Expenditures

Refers to the money spent on research and development activities, aiming at new product development or existing product improvement.

Invention

The act of creating or designing something that did not previously exist, usually a new device, method, or process.

Diffusion

The process by which an innovation or technology is adopted over time among members of a social system, community, or market.

Patent Trolls

Entities that purchase broad patents and use them to sue or threaten companies for patent infringement, often without producing any related products or services themselves.