In Terms of the Circular Flow Diagram Households Make Expenditures

question 90

Multiple Choice

In terms of the circular flow diagram households make expenditures in the _____ market and receive income through the _____ market.

• A)product; financial
• B)factor; product
• C)product; factor
• D)capital; product

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Definitions:

Debit

A bookkeeping record that leads to an uptick in a firm's assets or a reduction in its liabilities on the balance sheet.

Account Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Total Assets

The sum of all current and non-current assets owned by a business, representing its value and operational capacity.

Increase

Increase signifies a rise in value or quantity of a variable or account in the context of finance and accounting.