Use the following diagram to answer the next question. Businesses O (1) (2) O Resource Market (3) O Government (8) (7) Multiple Choice Product Market In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (4) might represent (5) (6) Households personal income taxes. investment spending by private corporations. O the purchase of stealth bombers. the services of NASA astrophysicists.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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**Use the following diagram to answer the next question.**

[Diagram: Circular Flow Model]

This diagram represents the circular flow of economic activity, illustrating the interactions between different sectors: Resource Market, Product Market, Businesses, Households, and Government. The diagram uses solid arrows to show real flows and broken arrows to indicate monetary flows.

- **Solid Arrows**: Represent the actual movement of goods and services or resources between sectors.
- **Broken Arrows**: Indicate the flow of money corresponding to these transactions.

Arrows are labeled with numbers:

- (1), (2), (3), etc.

**In the diagram, Flow (4) may represent:**

**Multiple Choice:**

- ○ personal income taxes.
- ○ investment spending by private corporations.
- ○ the purchase of stealth bombers.
- ○ the services of NASA astrophysicists.
Transcribed Image Text:**Use the following diagram to answer the next question.** [Diagram: Circular Flow Model] This diagram represents the circular flow of economic activity, illustrating the interactions between different sectors: Resource Market, Product Market, Businesses, Households, and Government. The diagram uses solid arrows to show real flows and broken arrows to indicate monetary flows. - **Solid Arrows**: Represent the actual movement of goods and services or resources between sectors. - **Broken Arrows**: Indicate the flow of money corresponding to these transactions. Arrows are labeled with numbers: - (1), (2), (3), etc. **In the diagram, Flow (4) may represent:** **Multiple Choice:** - ○ personal income taxes. - ○ investment spending by private corporations. - ○ the purchase of stealth bombers. - ○ the services of NASA astrophysicists.
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