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 one of the major characteristics of the circular flow in our economy, as individuals and businesses specialize in producing certain goods or services and exchange them for others they need. This leads to the efficient allocation of resources and the ability to produce a greater variety of goods and services. The other choices (A, B, C, E) are important concepts in economics but are not specifically related to the circular flow.

One of the Major Characteristics of the Circular Flow in Our