Which statement best describes the circular flow model? The model represents the movement of money and resources throughout the economy. The model represents the interactions within sectors. The model represents the flow of goods and services abroad. The model represents the changing relationships between actors.
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Money flows from producers to workers as wages and flows back to producers as payment for products. Show more…
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According to the circular flow of income and output, which of the following is not true? A. Goods and services flow in one direction and money payments flow in the other direction. B. Goods, services and money all flow in one direction since money pays for the goods and services. C. Total income and total output must be equal. D. In every economic transaction, the seller receives exactly the same amount that the buyer spends.
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In the circular-flow diagram, firms are sellers in both markets: the factors of production market and the goods and services market.
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The circular-flow diagram illustrates that, in markets for the factors of production, a. households are sellers, and firms are buyers. b. households are buyers, and firms are sellers. c. households and firms are both buyers. d. households and firms are both sellers.
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