In the Circular Flow Model,households

question 201

Multiple Choice

In the circular flow model,households

• A)demand resources and supply products.
• B)demand products and supply resources.
• C)demand both resources and products.
• D)supply both resources and products.

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Definitions:

Utility Maximizing

The principle that individuals or firms seek to achieve the highest level of satisfaction or benefit from their choices with the resources available.

Utility Maximizes

Refers to the economic principle that individuals or firms seek to obtain the greatest satisfaction from their actions, with the objective of maximizing benefits while minimizing costs.

Indifference Curve

A graphical representation showing different combinations of goods among which a consumer is indifferent.

Equal Number

A condition or state where two or more quantities or values are the same in magnitude.