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According to the Circular Flow Model, Which Statement Is True

Question 126

Multiple Choice

According to the circular flow model, which statement is true?


A) Households with income from land and capital are wealthier than households with income only from labor.
B) An entrepreneur who earns a wage must have at least two jobs.
C) A household that owns no land or capital can earn only wages and/or profit.
D) All services are produced by entrepreneurs.
E) Some workers are only paid in interest and profit.

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