In the Simple Circular Flow Model, the Funds Received by a Carmaker

question 14

Multiple Choice

In the simple circular flow model, the funds received by a carmaker when it sells a car goes to

• A) the workers who helped build the car.
• B) the owners of firms who sold materials to the carmaker, and the rest stays with the firm.
• C) only the owners of the carmaker.
• D) the owners of all of the resources used to make the car.

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Definitions:

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, that encircles the globe and is the site of seafloor spreading.

Oceanic Trench

A deep, narrow depression in the ocean floor, often formed by the subduction of one tectonic plate beneath another.

Ocean-continent Convergent

A tectonic boundary where an oceanic plate collides with a continental plate, often forming mountain ranges.

Continental Rift

A low trough or series of troughs bounded by normal faults, especially where two parts of a continent begin to rift apart.