All of the Following Are Examples of Spending on Factors

question 178

Multiple Choice

All of the following are examples of spending on factors of production in the circular flow model except

• A)Bima hires two students to work at his ice-cream store.
• B)"Get Fit Together" purchases 3 new treadmills for its gym.
• C)Iris buys a dozen roses for her mother's birthday.
• D)The Banyan Tree rents a much larger property so that it can add a restaurant to its facilities.

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Definitions:

Joint Operation

A business activity shared between two or more entities where they work together on a project but do not form a new entity.

Service Revenue

Income earned from rendering services as opposed to income from selling goods.

Management Fee Revenue

Income earned by an entity for providing managerial services or advice to other companies.

Supplying Service

The act of providing a service to customers, clients, or inside an organization as opposed to delivering a tangible product.