In the Circular-Flow Diagram, an Organization That Produces Goods and Services

question 72

Multiple Choice

In the circular-flow diagram, an organization that produces goods and services for sale is a:

• A) government.
• B) factor.
• C) household.
• D) firm.

---

Definitions:

Rebuilt Engines

Engines that have been disassembled, cleaned, inspected, repaired, and reassembled to working condition.

Operating Costs

Expenses associated with the day-to-day functioning of a business or operating a piece of equipment.

Operating Expenses

The costs associated with running a day-to-day business operation, excluding the cost of goods sold.

Discounted Price

The reduced price of a product or service after applying a discount to its original price.