In the Simple Circular Flow Model

question 182

Multiple Choice

In the simple circular flow model

• A) households spend the income they receive from labor services but save the income they receive from selling the other factors of production.
• B) businesses buy labor services from households, but supply other factors of production themselves.
• C) households spend their entire income on consumer products.
• D) profits are a type of income that is not received by households.

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Definitions:

Menopause

The period in a woman's life, typically between 45 and 55 years of age, when menstruation ceases.

Depression

A clinical condition characterized by a severe and prolonged feeling of sadness, hopelessness, and a lack of interest or pleasure in life.

Context

The circumstances or background that surrounds and gives meaning to an event, statement, or idea.

Word

A single distinct element of speech or writing, used with others (or sometimes alone) to form a sentence and typically shown with a space on either side when written or printed.