With Reference to the Circular Flow of Income,how Is the Allocation

question 44

Multiple Choice

With reference to the circular flow of income,how is the allocation of resources largely decided?

• A)by central authorities only
• B)by central authorities and firms only
• C)by individuals only
• D)by firms and households acting independently
• E)by political parties and firms only

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Definitions:

Spending Variance

The difference between the actual spending and budgeted or expected spending, used to assess financial management and cost control.

Direct Materials

Materials that are directly traceable to the production of a specific product.

Tenant-Days

A measure used in the hospitality or rental sector representing the total number of days rented out to tenants.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular period.