Figure 2-2 -Refer to Figure 2-2.The Figure Represents a Circular-Flow Diagram.If the a Circular-Flow

Multiple Choice

Figure 2-2

-Refer to Figure 2-2.The figure represents a circular-flow diagram.If the flow of goods and services is part of what is represented by the inner loop,then

A) the flow of factors of production is also part of what is represented by the inner loop.
B) the flow of income paid to households is also part of what is represented by the inner loop.
C) Box C must represent households and Box D must represent firms.
D) households must be sellers of output.