Which Statement Is FALSE About the Circular-Flow Diagram

question 219

Multiple Choice

Which statement is FALSE about the circular-flow diagram?

• A)Households are the primary demanders of goods and services.
• B)Firms are the primary suppliers of goods and services.
• C)Money flows from households to firms as households offer factors of production for sale.
• D)Money flows in the direction opposite to goods and services and factors of production.

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Definitions:

Cultivation Phase

A stage in relationships or projects where growth and development are emphasized and nurtured.

Psychosocial Support

Assistance provided to individuals or communities to help them cope with psychological and social challenges.

Psychosocial Functions

The roles that relationships and social networks play in shaping a person's psychological development and functioning.

Role Modeling

The process by which individuals pattern their behavior on the behavior of others whom they admire or wish to emulate.