Which of the Following Statements Illustrates That the Idea of Comparative

question 5

Multiple Choice

Which of the following statements illustrates that the idea of comparative advantage is embedded in the circular flow diagram?

• A) Households spend money on durable and non durable goods.
• B) Households are composed of individuals.
• C) The total dollar value of expenditures should equal the dollar value of incomes.
• D) Wages and salaries represent a major percentage of the firms' expenditures.
• E) Firms use the labour they hire to produce goods and services,which they sell to households.

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Definitions:

Higher Evaluations

Advanced assessments or judgments concerning the value, performance, or nature of something or someone.

Stereotypes

Oversimplified and widely held beliefs or generalizations about the characteristics, attributes, and behaviors of a particular group of people.

Male Athletes

Individuals who engage in competitive physical sports and activities and are categorized by their gender as male.

Self-centered

A personality trait that involves prioritizing one's own needs and interests above those of others.