The Simplest Circular-Flow Model Shows the Interaction Between Households and Firms.In

question 87

Multiple Choice

The simplest circular-flow model shows the interaction between households and firms.In this model:

• A)only barter transactions take place.
• B)households and firms interact in the market for goods and services,but firms are the only participants in the factor markets.
• C)firms supply goods and services to households,which in turn supply factors of production to firms.
• D)attention is focused on real flows of goods,services,and factors of production,but money flows between households and firms are ignored for simplicity.

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Definitions:

Foreland Basin

A structural basin located adjacent to mountain ranges, formed by the flexing of the earth's crust due to the weight of the mountain range.

Ocean-Continent Convergent Margin

A boundary between tectonic plates where an oceanic plate is subducting beneath a continental plate, leading to volcanic and seismic activity.

Fold and Thrust Belt

A series of mountainous folds and fault-driven compressions in the Earth's crust, typically found at convergent tectonic plate boundaries.

Magmas

Molten rock beneath or within the Earth's crust, from which igneous rocks are formed.