In the Circular Flow Diagram, Firms

question 14

Multiple Choice

In the circular flow diagram, firms:

• A) demand the inputs that households supply in product markets.
• B) demand the goods and services that households supply in product markets.
• C) supply the goods and services that households demand in product markets.
• D) supply the inputs that households demand in factor markets.

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Definitions:

Skills

The ability to perform tasks and solve problems due to knowledge, experience, and aptitude.

Ethics Competency

The ability to recognize ethical issues, make ethical decisions, and incorporate ethical behavior into one's professional practice.

Worker Turnover

The rate at which employees leave a workforce and are replaced by new hires.

Apparel Industry

A sector of the economy that designs, manufactures, and sells clothing, footwear, and accessories.