The circular-flow diagram illustrates:
A) the minimum wage state by state.
B) fluctuations in exchange rates.
C) changes in worker productivity.
D) the key concepts in the national accounts.

Question

Quizplus · Accepted Answer

The circular-flow diagram is a visual representation of the key concepts in the national accounts, including the flow of goods and services, factors of production, and income among households, firms, and the government. It does not relate to minimum wage, exchange rates, or productivity.

The Circular-Flow Diagram Illustrates