Which of the Following Is True Within the Circular Flow

question 105

Multiple Choice

Which of the following is true within the circular flow of economic activity?

• A) Households are sellers of products and sellers of production factors.
• B) Business firms are buyers and sellers of production factors.
• C) Households are sellers of products and buyers of production factors.
• D) Business firms are sellers of products and buyers of production factors.

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Definitions:

Salary

Fixed regular payment, typically expressed on an annual basis, made by an employer to an employee, especially a professional.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Pregnancy Discrimination Act

A United States federal law that prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions in any aspect of employment.

Employee Retirement Income Security Act

A federal law that sets minimum standards for retirement and health benefit plans in private industry to protect individuals in these plans.