Multiple Choice
In a circular-flow diagram, which flows are involved?
A) Taxes flow from households to firms, and transfer payments flow from firms to households.
B) Income payments flow from firms to households, and sales revenue flows from households to firms.
C) Resources flow from firms to households, and goods and services flow from households to firms.
D) Inputs and outputs flow in the same direction as the flow of dollars, from firms to households.
Correct Answer:
Verified
Correct Answer:
Verified
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