Use the Following to Answer Questions

question 142

Multiple Choice

Use the following to answer questions:
-(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model The flow of funds into and out of households is:

• A) $1,020.
• B) $1,000.
• C) $850.
• D) $700.

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Definitions:

Parallel Importing

The importation of legally produced goods without the permission of the intellectual property owner, usually to exploit price differences between markets.

Currency Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.

Licensing

A business arrangement in which one party allows another to use its trademark, patent, or technology in exchange for a fee or royalty.

Franchising

A method of doing business wherein a franchisor licenses trademarks and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage of gross sales or gross profits as well as the annual fees.