What Is the Circular Flow Diagram and Why Is It

question 45

Essay

What is the circular flow diagram and why is it useful?

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Definitions:

Economic Returns

The financial gain or loss generated as a result of an investment or business activity, taking into account both revenue and costs.

Social Returns

The non-financial gains achieved by society from an investment, project, or initiative, such as improvements in well-being or equality.

Entrepreneurs

People who manage and run enterprises, assuming higher-than-average financial risks in the process.

YouTube

A video sharing service that allows users to watch videos posted by others and upload videos of their own, one of the world's most popular websites.