In the Simple Circular-Flow Diagram, the Participants in the Economy

question 160

Multiple Choice

In the simple circular-flow diagram, the participants in the economy are

• A)firms and government.
• B)households and firms.
• C)households and government.
• D)households, firms, and government.

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Definitions:

Project Analysis

The process of evaluating the potential risks and returns associated with investing in a particular project.

Market Value

The total value of a company or asset in the financial market based on the current price at which it can be bought or sold.

Idle

The state of an asset or resource not being in use, contributing no output or value during a certain period.

Fixed Assets

Long-term tangible assets that are used in the operation of a business and are not expected to be converted to cash in the short term, such as land, buildings, and machinery.