In the Circular-Flow Diagram

question 224

Multiple Choice

In the circular-flow diagram,

• A)factors of production flow from government to firms.
• B)goods and services flow from households to firms.
• C)income paid to the factors of production flows from firms to households.
• D)spending on goods and services flows from firms to households.

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Definitions:

Attitudes

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor, influenced by personal experience and social context.

Behavior

The actions or reactions of an organism or any living entity, usually in response to its environment or stimuli.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to conflicting beliefs, values, or attitudes.

Paid

To give money in exchange for goods, services, or to settle a debt.