Figure 2-2 -Refer to Figure 2-2.If the Outer Loop of This Circular-Flow

question 256

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.If the outer loop of this circular-flow diagram represents flows of dollars,then the inner loop includes

• A)flows of goods and services from households to firms.
• B)flows of inputs from households to firms.
• C)flows of rent payments paid to owners of land.
• D)flows of wages and salaries paid to workers.

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Definitions:

Iris

The colored part of the eye that controls the size of the pupil and, consequently, the amount of light that enters the eye.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time.

Response Criterion

The subjective standard or rule used by individuals to decide whether or not to respond in a particular situation.

Base Value

The initial value used as a reference point for comparison or calculation in various contexts, such as mathematics or finance.