Which of the following holds true in a circular flow diagram?
A) Income flow are represented by drawing an arrow from the household sector to firms.
B) Factor flows are represented by drawing an arrow from the firm sector to the household sector.
C) Production flows are represented by drawing an arrow from the firm sector to the household sector.
D) Expenditure flows are represented by drawing an arrow from the firm sector to the household sector.
C
You might also like to view...
Does a perfectly competitive producer have any incentive to lower its price so it is below the current market price? Explain your answer
What will be an ideal response?
Which of the following changes would cause American net exports to increase?
A) An increase in the real value of the dollar B) An increase in American income C) An increase in foreign income D) A shift in demand by American consumers away from domestically produced goods