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:

Borrow

The act of receiving something of value in exchange for the promise to return it or its equivalent at a later date.

Credit Card Company

A financial institution that issues credit cards, extending credit for consumers to purchase goods and services with the promise of future repayment.

Service Charge

An additional fee charged for services rendered, often seen in the hospitality and banking industries.

Merchandise Sale

The process of selling goods that are purchased for resale, constituting a primary revenue source for retail businesses.