In the Circular-Flow Diagram

question 224

Multiple Choice

In the circular-flow diagram,

• A)factors of production flow from government to firms.
• B)goods and services flow from households to firms.
• C)income paid to the factors of production flows from firms to households.
• D)spending on goods and services flows from firms to households.

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Definitions:

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Incremental Models

Models or theories that suggest development or progress occurs in small, sequential steps.

Continuous Process

A process characterized by ongoing operations or functions without interruption.

Psychoanalytic Theory

A theory of personality development and its complex functioning in adulthood originated by Sigmund Freud.