Figure 2-2 -Refer to Figure 2-2.If the Flow of Goods and Services

question 249

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram,then

• A)the flow of factors of production is also part of what is represented by the inner loop.
• B)the flow of income paid to households is also part of what is represented by the inner loop.
• C)the flow of revenue to firms is also part of what is represented by the inner loop.
• D)households must be sellers of output.

---

Definitions:

Classifications of Agencies

Classifications of agencies refer to the categorization of different types of agency relationships based on authority, nature of work, and the legal implications involved.

Cabinet-Level Departments

Major administrative units in the executive branch of the U.S. government, each headed by a Secretary who is a member of the President's Cabinet.

Executive Agencies

Federal agencies headed by appointed officers and responsible for enforcing laws and regulations within specific areas overseen by the executive branch of government.

Independent Agencies

Government bodies that operate independently of executive departments, often with regulatory or oversight functions.