The Circular Flow of Economic Activity Is a Model of The

question 114

Multiple Choice

The circular flow of economic activity is a model of the:

• A)​flow of goods, services, and payments between households and firms.
• B)​influence of government on business behavior.
• C)​role of unions and government in the economy.
• D)​interaction among taxes, prices, and profits.

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Definitions:

Copper

A reddish-brown, malleable, ductile metallic element used as a conductor of heat and electricity, and in various alloys.

Zinc

A chemical element with symbol Zn and atomic number 30, used primarily for galvanizing steel to protect against corrosion.

Production Function

A mathematical relation that describes the maximum amount of output that can be obtained from a given set of inputs, under certain assumptions.

Labor

The application of human strength and intellect in the fabrication of products and provisions.