In the circular flow model, which of the following items is a ...

[olgavictoria]

In the circular flow model, which of the following items is a real flow?
 
  A. The flow of government expenditures to firms for the goods bought
  B. The flow of income from firms to households for the services of the factors of production hired
  C. The flow of U.S. borrowing from the rest of the world
  D. The flow of labor services from households to firms

Question 2

Define expected utility.
 
  What will be an ideal response?

[Andromeda18]

Answer to Question 1

D Answer D is a real flow because it is a labor service.

Answer to Question 2

It represents the sum of the utilities coming from all possible outcomes of a deal, weighted by the probability of each occurring.

[olgavictoria]

Gracias!

[ktidd]

Thanks for the timely response, appreciate it