In the Circular Flow Model, Which of the Following Is

question 15

Multiple Choice

In the circular flow model, which of the following is on the buying side in the goods market? i. Firms
Ii) Households
Iii) Federal, state and local governments

• A) i only
• B) ii only
• C) iii only
• D) i and ii
• E) ii and iii

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Definitions:

Unrecognized Gains

Profits that have been earned but not yet realized or reported in the financial statements.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Defined Benefit Pension Plans

Pension plans that promise a specified monthly benefit at retirement, which may be calculated through a formula based on earnings and years of service.

Required Disclosure

Obligatory sharing of specific financial or operational information by a company, as mandated by regulatory bodies or laws.