In the Circular Flow Diagram, the Different Payments Made by Firms

question 16

Multiple Choice

In the circular flow diagram, the different payments made by firms to households include

• A) wages and profits.
• B) interest and taxes.
• C) transfer payments and dividends.
• D) taxes and transfer payments.

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Definitions:

Feel-good, Do-good Phenomenon

A psychological concept suggesting that individuals who feel happy or content are more likely to perform acts of kindness or altruism.

Emotion-focused

A therapeutic approach designed to help individuals manage and cope with their emotional responses rather than trying to change the underlying situation.

Problem-focused

A coping strategy targeting the causes of stress in practical ways, aiming to reduce or eliminate the source of the problem.

Coping

The use of cognitive and behavioral strategies to manage stress and emotional distress.