In the Simple Circular Flow Model, the Funds Received by a Carmaker

question 14

Multiple Choice

In the simple circular flow model, the funds received by a carmaker when it sells a car goes to

• A) the workers who helped build the car.
• B) the owners of firms who sold materials to the carmaker, and the rest stays with the firm.
• C) only the owners of the carmaker.
• D) the owners of all of the resources used to make the car.

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Definitions:

Personal Responsibility

The concept emphasizing an individual's obligation to manage their own actions, decisions, and well-being in various aspects of life.

Equity Theory

A theory in social psychology that explains how individuals perceive fairness in the distribution of resources within their interpersonal relationships.

Motivation

The psychological process that arouses and directs goal-oriented behavior.

Perceived Inequity

A feeling or perception that one's inputs or contributions are not being rewarded or recognized fairly relative to others.