In the Circular-Flow Diagram,which of the Following Items Flows from Firms

question 244

Multiple Choice

In the circular-flow diagram,which of the following items flows from firms to households through the markets for the factors of production?

• A)goods and services
• B)land,labor,and capital
• C)dollars spent on goods and services
• D)wages,rent,and profit

Analyze the conditions necessary for the invisible hand of market prices to work properly.

Understand the nature of market organization and how competition and property rights foster economic efficiency.

Distinguish the effects of market changes on prices and quantities in specific scenarios.

Interpret the implications of the invisible hand concept for economic prosperity and social cooperation.

---

Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Correlation Coefficients

Statistical measures that quantify the degree to which two variables are related or move together, ranging from -1 to +1.

Correlation Coefficient

A numerical indicator that shows the degree to which two or more variables move in conjunction with each other.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, indicating an inverse relationship.