In the Simple Circular Flow Model

question 182

Multiple Choice

In the simple circular flow model

• A) households spend the income they receive from labor services but save the income they receive from selling the other factors of production.
• B) businesses buy labor services from households, but supply other factors of production themselves.
• C) households spend their entire income on consumer products.
• D) profits are a type of income that is not received by households.

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Definitions:

Latin Word

A term or expression originating from Latin, an ancient Italic language historically used in the Roman Empire and still used in specific contexts like scientific nomenclature.

Motive

An internal drive or reason that stimulates and directs behavior towards specific goals.

Emotion

A complex psychological state involving an individual's state of mind, physiological changes, and behavior in response to a stimulus.

Origin of Emotions

Refers to the beginnings or causes of emotional experiences, which can be influenced by biological, psychological, and environmental factors.