The Simple Circular Flow Model Shows That Workers and Owners

question 184

Multiple Choice

The simple circular flow model shows that workers and owners of land and capital offer their services through:

• A)product markets.
• B)factor markets.
• C)money markets.
• D)government.
• E)the foreign currency market.

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Definitions:

Military

The armed forces of a country, responsible for defending it from external threats and ensuring internal security, often involving significant personnel and technology.

Capital Stock

The total value of all durable goods available for use in production, including machinery, buildings, and equipment.

Increase

A situation where there is a rise in quantity, size, number, value, or intensity of a particular economic variable or element.

Sub-Prime Loan

A type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans, usually because of poor credit histories.