One of the Key Concepts Involved in the Circular Flow

question 304

Multiple Choice

One of the key concepts involved in the circular flow diagram is that

• A) households and businesses are in conflict with each other.
• B) the national economy is similar to a zero-sum game.
• C) one person's spending is another person's income.
• D) the sum of the resource and product markets must equal household income.

---

Definitions:

Privately Sponsored Refugee

A refugee who is supported financially and socially by private individuals or groups rather than by the government directly.

Internally Displaced Person

Someone who is forced to flee their home but remains within their country's borders, often due to conflict, violence, or natural disasters.

Armed Militants

Individuals or groups that use weapons and engage in acts of violence, often for political purposes or to challenge established authority.

International Refugee Organizations

Entities that operate across borders to provide aid, protection, and support to refugees and asylum seekers.