In the Circular Flow Model, the Flow of Dollars from Firms

question 59

Multiple Choice

In the circular flow model, the flow of dollars from firms to households is paid _____ and the flow of dollars from households to firms is paid _____.

• A) as wages and profits; for goods and services
• B) for value added; as imputed values
• C) in current dollars; in constant dollars
• D) as interest and dividends; for depreciation and taxes

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Definitions:

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, known for its pungent smell and used in various industrial processes.

Valles Marineris

A vast canyon system on the planet Mars, stretching about 4,000 kilometers and known as one of the largest canyon systems in the Solar System.

Kilometers

A unit of measurement equal to 1,000 meters, commonly used to measure distances between geographical locations.

Eroded

The process by which natural forces remove soils, rock, or dissolved material from one location and transport it to another, often leading to changes in landscape and topography.