The Circular Flow Model Shows That Goods and Services Flow

question 10

Multiple Choice

The circular flow model shows that goods and services flow from

• A) businesses to households.
• B) households to business.
• C) the factor market to businesses.
• D) the goods market to businesses.
• E) the factor markets to the goods markets.

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Definitions:

Quantity Control

Regulatory measures or policies aimed at limiting the amount of goods produced, supplied, or available in a market.

Lower Limit

The smallest value that a given set, statistical sample, or data category can take on or be assigned.

Upper Limit

The maximum level or value that can be reached or is allowable in a given context.

Supply and Demand

Fundamental economic model describing how prices vary as a result of a balance between product availability and consumer demand.