Exhibit 1.1 -Refer to the Circular-Flow Model in Exhibit 1.1. If C

question 107

Multiple Choice

Exhibit 1.1

-Refer to the circular-flow model in Exhibit 1.1. If C represents households and A represents product markets, then the flow from C to A is:

• A) revenue.
• B) expenditures.
• C) products.
• D) income.
• E) resources.

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Definitions:

Fairly Linear

Describes a relationship or trend that closely approximates a straight line.

Exponential

Refers to the rapid increase or growth at a constant rate over time.

Positive

A term that can refer to an optimistic outlook, a test result indicating the presence of a substance or condition, or a number greater than zero.

Negative

A term that can denote a quantity less than zero, a pessimistic outlook, or the inversion of a situation or condition.