One of the Principles Behind the Concept of the Circular

question 101

Multiple Choice

One of the principles behind the concept of the circular flow is that

• A) in every economic exchange, the seller receives exactly the same amount that the buyer spends.
• B) in every economic exchange, the seller receives less than the amount that the buyer spends.
• C) the seller of goods receives exactly the same amount that the buyer spends, but the seller of resources receives less than the buyer spends.
• D) in exchange involving products, the seller receives less than the amount the buyer spends, but in resource markets the seller receives more than the buyer spends.

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