The Circular Flow Model Shows That

question 74

Multiple Choice

The circular flow model shows that

• A)households receive income from businesses in exchange for providing inputs and use the income to buy goods and services from businesses.
• B)businesses receive rent from households in exchange for providing goods and services and use the income to buy inputs from households
• C)households receive revenue for selling goods and services to businesses and use the revenue to buy inputs from businesses.
• D)businesses receive revenue for providing inputs to households and use the revenue to buy goods and services.
• E)businesses receive wages and interest, which they use to invest for the growth of an economy as a whole.

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Definitions:

Spreadsheet

A digital worksheet that organizes data in rows and columns which can be manipulated and used for calculation, analysis, and storage.

Two-Way Data Tables

A type of data table in Excel that allows users to view how changing two variables simultaneously will affect a single outcome.

Investment Allocations

The process of distributing resources or capital across various investment vehicles to achieve desired risk and return objectives.

Uncontrollable Variables

Factors in an experiment or study that cannot be controlled or influenced by the researcher.