In the Simple Circular Flow Model

question 33

Multiple Choice

In the simple circular flow model,

• A)households spend the money they receive from labour services but save the money they receive from selling the other factors of production.
• B)businesses buy labour services from households,but supply other factors of production themselves.
• C)households spend their entire income immediately on consumer products.
• D)profits are a type of income that is not received by households.

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Definitions:

Emotionally Distant

Refers to individuals who are not easily open to sharing their feelings or forming close emotional connections with others.

Myths

Traditional stories, often with a historical basis, that serve to explain a practice, belief, or natural phenomenon.

Misconceptions

Incorrect or mistaken beliefs or ideas stemming from misunderstanding or lack of knowledge.

Provocatively

In a manner intended to arouse or elicit a strong reaction or interest, often by challenging conventional norms.