The Circular Flow Model Is Used to Show the

question 1

Multiple Choice

The circular flow model is used to show the

• A) flow of renewable natural resources.
• B) recycling process of production materials.
• C) expansions and contractions of economic activity.
• D) flow of expenditures and incomes in the economy.
• E) flow of supply and the flow of demand.

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Definitions:

Tender Offer

A public offer by a suitor to buy voting stock.

SEC

The SEC, or Securities and Exchange Commission, is a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry, including stock and options exchanges.

Merger

The acquisition of one corporation by another.

Golden Parachute

A substantial benefit package given to corporate executives upon termination, often following a merger or takeover.