The Circular-Flow Diagram Illustrates All of the Following in the U.S

question 375

Multiple Choice

The circular-flow diagram illustrates all of the following in the U.S. economy EXCEPT:

• A)growing income inequality.
• B)flows of money.
• C)flows of goods and services.
• D)the purchase and sale of factors of production.

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Definitions:

Trade

The exchange of goods and services between parties, which can occur within a country or internationally, driven by the principle of comparative advantage.

1960s

A decade known for significant cultural, political, and socio-economic changes worldwide.

1970s

A decade from 1970 to 1979 characterized by significant political, social, and economic changes worldwide.

1980s

A decade characterized by major geopolitical changes, advancements in technology, and notable cultural developments.