In the Circular-Flow Diagram, One Loop Represents the Flow of Goods

question 130

True/False

In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars.

---

Definitions:

Classification

The systematic process of organizing and categorizing entities based on shared characteristics or principles.

Cardinal Trait

A characteristic or feature that is so dominant in an individual's personality that it influences nearly all of their actions and attitudes.

Dominates

To have a commanding influence on; exercise control over.

Personality Trait

A characteristic or quality that defines an individual's consistent behaviors and attitudes over time.