The Circular Flow Model Shows the Flow Of

question 99

Multiple Choice

The circular flow model shows the flow of:

• A)money in the economy.
• B)financial assets in the economy.
• C)goods and services in the product market.
• D)resources and money in the economy.
• E)resources through the resource markets and their allocation in the product market.

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Definitions:

ERG Theory

A three-level hierarchical need theory of motivation (existence, relatedness, growth) that allows for movement up and down the hierarchy.

Alderfer

Psychologist Clayton Alderfer developed the ERG theory, which outlines three core needs: Existence, Relatedness, and Growth, as motivation drivers.

Maslow

Refers to Abraham Maslow, an American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority.

Growth Needs

Refers to the intrinsic desire for personal development, achievement, and self-actualization beyond basic material or survival needs.