Which of the Following Is True of the Circular Flow

question 53

Multiple Choice

Which of the following is true of the circular flow model?

• A)It differentiates natural resources from the other factors of production.
• B)It suggests that to keep up with the economy, the population must grow.
• C)It treats economic growth as both the solution to all social ills and also as boundless.
• D)It argues that the economy cannot grow indefinitely.

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Definitions:

Newspaper Industry

The sector of the economy involved in the production and distribution of daily or weekly publications containing news, information, and advertising.

Primary Activities

Those business activities related to the production and distribution of the firm’s products and services, thus creating value.

Support Activities

Business activities that do not add value directly to a firm’s product or service under consideration but support the primary activities that do add value.

Add Value

To add value means to enhance or increase the worth of a product or service through additional features, improved quality, or enhancement of some form.