Which One of the Following Is an Example of a Circular

question 113

Multiple Choice

Which one of the following is an example of a circular flow model and shows the interdependence of households and firms?

• A) Households demand their resources from firms in the factor markets and, in turn, supply in the product market, the goods and services produced by the firms.
• B) Firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets.
• C) Households supply their resources to firms in the factor markets and, in turn, demand in the product market, the goods and services produced by the firms.
• D) Firms in the factor markets pay households, in the form of wages, interest, rent and profit, for resources demanded.

---

Definitions:

Alzheimer's

A progressive neurodegenerative disease characterized by memory loss, cognitive decline, and personality changes, resulting from the death of brain cells and the breakdown of connections between them.

Alzheimer's Disease

A progressive neurological disorder marked by memory loss, cognitive decline, and personality changes, leading to severe dementia.

Brain Reserve

The concept that the brain has a capacity to compensate for injury or disease through cognitive tasks by using pre-existing cognitive processing approaches or networks.

Intellectual Skills

Abilities related to the cognitive processes of understanding, reasoning, problem solving, and learning.