What Does the Simple Circular-Flow Diagram Illustrate

question 118

Multiple Choice

What does the simple circular-flow diagram illustrate?

• A) that expenditure generates income so that income and the value of production are equal
• B) that the economy's income exceeds its expenditure
• C) that factors of production "flow" from firms to households
• D) that money "flows" from households to firms

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Definitions:

Inhospitable

Describes an environment that is extremely difficult for living organisms to survive in due to harsh conditions.

Inhospitable

Referring to environments that are harsh, difficult to live in, or unwelcoming to human settlement or certain forms of life.

Insecticide

Chemical substances used to kill or manage the population of insects, often employed in agriculture, public health, and homes.