An Example of a Money Flow in the Circular Flow

question 126

Multiple Choice

An example of a money flow in the circular flow diagram is

• A) a student's payment of tuition to her university.
• B) the government's operation of the court system.
• C) the government's financing of the national debt.
• D) a firm's production of goods to sell to a foreign country.
• E) a farmer's use of land to grow wheat.

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Definitions:

Health Insurance

A type of insurance coverage that pays for an individual's medical and surgical expenses.

Efficient Market

A market in which prices fully reflect available information, allowing for optimal allocation of resources.

Positive Statement

An objective statement that can be tested, amended, or rejected by referring to the available evidence.

Insurance Benefits

Insurance benefits are payments made by an insurance company to the insured or a designated beneficiary under the terms of an insurance policy.