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A Circular-Flow Diagram Is a Visual Model of the Economy

question 167

True/False

A circular-flow diagram is a visual model of the economy.


Definitions:

Business Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs associated with sustaining the business operations.

Business Purpose

Business purpose is the fundamental reason for an organization's existence, beyond just making a profit, often reflecting its values, mission, and the needs it seeks to fulfill.

Discretionary Responsibility

The expectation for businesses or individuals to take actions that are not mandated by laws or regulations, but are considered ethically correct.

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