Which of the Following Is TRUE Within the Circular Flow

question 153

Multiple Choice

Which of the following is TRUE within the circular flow of economic activity?

• A) Households are buyers of products and sellers of production factors.
• B) Business firms are buyers and sellers of production factors.
• C) Households are sellers of products and buyers of production factors.
• D) Business firms are buyers of products and sellers of production factors.

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Definitions:

Stimulus Generalization

A psychological phenomenon where a response to a specific stimulus becomes associated with similar stimuli, leading to a similar response without explicit training.

Selective Comprehension

The process by which consumers interpret information in a way that aligns with their beliefs, values, or needs, often leading to biased understanding.

Behavioral Learning

The process of acquiring new behaviors through conditioning and interaction with the environment.

Reinforcement

In psychology and marketing, the process of encouraging a desired behavior or response through rewards or positive outcomes.