Question

Question 13

________ show(s) how resources and final goods and services flow through the economy.

Allocation

Circular flow

Trade-offs

Money

Government

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Question 14

When an individual chooses to act, he or she is said to be motivated by

disincentives.

indifference.

ambivalence.

scarcity.

incentives.

Answer 1

13. Option b is the answer.

• Circular flow shows how resources and final goods and services flow through the economy.
• Circular flow is a neo classical economical model for showing how money and other resources flows in an economy. In an economy, goods and services flow in one direction whereas money flows in the opposite direction.

14. Option e is the answer.

• When an individual chooses to act, he or she is said to be motivated by incentives.
• Incentive motivates a person to do a job as it is gaining him money or any other needed service. Incentives result in greater output from the workers. All other options provided in the question are demotivating factors.