In the Circular-Flow Diagram,which of the Following Items Flows from Households

question 22

Multiple Choice

In the circular-flow diagram,which of the following items flows from households to firms through the markets for goods and services?

• A)goods and services
• B)dollars paid to land,labor,and capital
• C)dollars spent on goods and services
• D)wages,rent,and profit

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Definitions:

Critical Thinking

The process of objectively analyzing and evaluating an issue in order to form a judgment.

Illusory Correlation

The perception of a relationship between two variables when no such relationship exists.

Psychological Research

The systematic investigation of the mind and behavior through controlled experimentation and observation.

Everyday Reasoning

The process of making sense of daily occurrences and drawing conclusions based on personal experiences and beliefs.