Figure 2: Circular flow diagram C Refer to figure 2. Declan T. works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Zack Z. owns office buildings and rents his buildings to companies in exchange for rent payments. If Declan T's income is represented by a flow of dollars from Box D to Box B of this circular-flow diagram, then Zack Z's income is represented by a flow of dollars from O Box A to Box C. Вох В to Box D. O Box D to Box B. O Box C to Box A.
Figure 2: Circular flow diagram C Refer to figure 2. Declan T. works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Zack Z. owns office buildings and rents his buildings to companies in exchange for rent payments. If Declan T's income is represented by a flow of dollars from Box D to Box B of this circular-flow diagram, then Zack Z's income is represented by a flow of dollars from O Box A to Box C. Вох В to Box D. O Box D to Box B. O Box C to Box A.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
16

Transcribed Image Text:Question 16
Figure 2: Circular flow diagram
C
Refer to figure 2. Declan T. works as an attorney for a corporation and is paid a salary in
exchange for the legal services he performs. Zack Z. owns office buildings and rents his buildings
to companies in exchange for rent payments. If Declan T's income is represented by a flow of
dollars from Box D to Box B of this circular-flow diagram, then Zack Z's income is represented
by a flow of dollars from
O Box A to Box C.
O Box B to Box D.
Воx D to Box В.
Box C to Box A.
Expert Solution
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Step 1
The circular flow of income is a model of the economy in which the major exchanges are represented as flows of money, goods and services between economic agents.
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