Graph 2-2 -Refer to Graph 2-2. in the Circular-Flow Diagram Shown, Which

question 121

Multiple Choice

Graph 2-2

-Refer to Graph 2-2. In the circular-flow diagram shown, which arrow shows the flow of the factors of production?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period, typically reflected as a percentage increase in real GDP.

Doubling Inputs

When the quantities of all inputs used in the production process are increased by the same proportion.

Foreign Direct Investment

is an investment made by a firm or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

Foreign Portfolio Investment

Investment in financial assets from another country, such as stocks or bonds, without direct control over the businesses.