Assume that rents flow clockwise in a circular economic flow diagram.This implies that land flows:
A) clockwise and capital flows counterclockwise.
B) clockwise and profits flow counterclockwise.
C) counterclockwise and capital flows clockwise.
D) counterclockwise and profits flow clockwise.

Question

Quizplus · Accepted Answer

In a circular flow diagram, factors of production like land flow in the opposite direction to the flow of money (rents), so if rents flow clockwise, land flows counterclockwise. Profits, being part of the monetary flow, would flow clockwise.

Assume That Rents Flow Clockwise in a Circular Economic Flow