In the Circular Flow Model, Which of the Following Is

question 3

Multiple Choice

In the circular flow model, which of the following is on the selling side in the goods market?

• A) Exporters
• B) Both firms and households
• C) Firms only
• D) Federal, state and local governments
• E) Households only

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Definitions:

Labor Demand

Denotes the quantity of labor that employers are willing to hire at a given wage rate in a given time period.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied changes by an infinite amount in response to any change in price; most common in theoretical models.

Total Costs

The total amount of expenses a business has for producing goods or services, encompassing both constant and fluctuating costs.

Elasticity of Demand

An indicator quantifying the impact of price movements on demand for a good.