In the Circular Flow Diagram, the Counterclockwise Direction Shows the Flow

question 283

Multiple Choice

In the circular flow diagram, the counterclockwise direction shows the flow of _____, where households supply _____ and businesses supply _____.

• A) money; purchases of goods and services; income to households
• B) money; labor; goods and services
• C) goods and services; labor; goods and services
• D) goods and services; purchases of goods and services; income to households

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Definitions:

Unique Experiences

Distinctive or singular events, activities, or situations that an individual encounters, often leaving a lasting impact.

White Collar Crime

A category of non-violent crime, typically committed by individuals in higher social or professional positions, involving financial deception or fraud.

Corporate Tax Evasion

The illegal practice of deliberately avoiding paying the rightful amount of taxes by corporations, often through dishonest reporting or other means.

Insider Trading

The trading of a public company's stock or other securities (such as bonds or stock options) by individuals with access to non-public, material information about the company.