Which of the Following Is Illustrated by the Circular Flow

question 89

Multiple Choice

Which of the following is illustrated by the circular flow of income?

• A)the flows of expenditures and income in a household
• B)that firms own the factors of production
• C)the interaction of households and firms through the factors and goods markets
• D)that the flow of payments moves in the same direction as the flow of goods
• E)that there is no relationship between goods markets and factor markets

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Definitions:

Ambiguous Jurisdictions

Situations where the authority or legal power to govern or make decisions is unclear or disputed.

Scarce Resources

Resources that are limited in availability and cannot satisfy all the demands or requirements in a given environment.

Dependence

A situation in which someone relies on something or someone else for support or needs them in order to survive or succeed.

Prime Work Positions

Employment roles considered highly desirable due to factors like salary, status, or the opportunity for professional growth.