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"Public Circle" variation = Facebook Groups.

Yup. There are a lot of variations on "circles" that can make sense in different contexts. I'm hoping that Google+ adds more.

Currently I'm just categorizing people by how I know them. For instance if I know them through work, which job(s) did I work with them in?

You are requesting nested circles.

I am not requesting nested circles. Though a lot of people have requested that.