One of the major characteristics of the circular flow in our economy is
A) the production possibility curve.
B) market prices.
C) opportunity cost.
D) specialization and exchange.
E) absolute advantagE.

Question

Quizplus · Accepted Answer

Specialization and exchange are a major characteristic of the circular flow in our economy, as businesses and individuals specialize in producing certain goods or services and exchange them with others in the market. This exchange drives the flow of goods, services, and money between households and businesses, creating a continuous circular flow of economic activity. While the other options listed are important concepts in economics, they do not specifically relate to the circular flow of economic activity.

One of the Major Characteristics of the Circular Flow in Our