Which of the Following Is an Example of Spending on Factors

question 148

Multiple Choice

Which of the following is an example of spending on factors of production in the circular flow model?

• A)Orson buys a package of beef jerky at a convenience store.
• B)Bernadette gets a manicure and pedicure before attending her parents' anniversary party.
• C)Landon pays $100 for a season pass to a water park.
• D)The "Suds Bucket" car wash buys new squeegees for all its employees.

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Definitions:

Bond Redemption

The process of repaying the face value of a bond upon its maturity, thereby fulfilling the issuer's obligations to the bondholders.

Carrying Value

The book value of assets and liabilities on the balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Retired

Often refers to the status of an asset that has been taken out of use and is no longer productive.

Interest Rate

The percentage of a loan that a borrower must pay as interest, usually shown as an annual rate based on the outstanding loan amount.