In the Simple Circular-Flow Diagram, in Which Market Are Firms

question 11

Multiple Choice

In the simple circular-flow diagram, in which market are firms sellers?

• A) the goods and services market
• B) the factors of production market
• C) both the factors of production market and the goods and services market
• D) neither the factors of production market nor the goods and services market

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Definitions:

Workforce

The collective group of people who work in an organization or are available to work in a country or area, including both the employed and the unemployed.

Cost Leadership Strategy

A business approach aimed at becoming the lowest cost producer in an industry, allowing it to undercut competitors on price while maintaining profitability.

Prospector Strategy

A business approach focusing on innovation and exploration, seeking to discover new opportunities and markets.

Dynamic Environment

A situation or setting that is characterized by constant change, challenges, and opportunities, requiring organizations or individuals to adapt rapidly.