The Simple Circular Flow Model Shows That

question 33

Multiple Choice

The simple circular flow model shows that:

• A)households are on the demand side of both product and factor markets.
• B)businesses are on the supply side of both product and factor markets.
• C)households are on the supply side of the factor market and on the demand side of the product market.
• D)businesses are on the demand side of the product market and on the supply side of the factor market.

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Definitions:

Normative Statement

A statement that expresses a value judgement or an opinion about what ought to be, rather than an objective or fact-based assertion.

Advanced Nation

A term synonymous with developed countries, signifying a country with a high level of economic development and standard of living.

Policy Recommendation

A proposal provided by experts or analysts on specific ways to address a particular issue or to improve a situation.

Homeless People

Homeless people are individuals who lack a fixed, regular, and adequate nighttime residence, including those living on the streets, shelters, or in unstable housing situations.