In Terms of the Circular Flow Diagram, Businesses Obtain Revenue

question 223

Multiple Choice

In terms of the circular flow diagram, businesses obtain revenue through the _____ market and make expenditures in the _____ market.

• A)product; financial
• B)resource; product
• C)product; resource
• D)capital; product

---

Definitions:

Disaster Relief Funds

Financial assistance provided to individuals, businesses, and communities affected by natural or human-made disasters.

Flood-Prone Areas

Regions that are highly susceptible to flooding due to their geographical features, environmental conditions, or proximity to bodies of water.

Depositor Moral Hazard

A situation in financial systems where depositors engage in riskier behaviors because they know their deposits are protected, for instance, by government insurance.

Savings and Loan Industry

A sector of the financial services industry that specializes in accepting savings deposits and making mortgage and other loans.