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:

Obedience to Rules

The act of following directives, standards, or laws established by authorities or societies to maintain order and achieve collective goals.

Equal Worth

The principle that all individuals have the same intrinsic value, regardless of their circumstances, and should be treated with dignity and fairness.

Maximum Extent

The greatest possible degree or limit to which something can be extended or enlarged.

Utilitarianism

A moral philosophy that bases the rightness or wrongness of actions on their consequences, especially their ability to bring about the greatest happiness for the greatest number of people.