Which of the Following Transactions Does Not Take Place in the Markets

question 335

Multiple Choice

Which of the following transactions does not take place in the markets for the factors of production in the circular-flow diagram?

• A) Jason provides plumbing services for a plumbing company and receives an hourly wage from the company for his services.
• B) Jennifer works as a marriage counselor and her clients pay her on a per-hour basis for her services.
• C) Brody owns several shopping malls and receives rent payments from the companies that operate those malls.
• D) Bree sells advertising for a newspaper and receives a commission from the newspaper company for each advertisement that she sells.

---

Definitions:

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity of that good supplied, leading to market equilibrium.

Equilibrium Quantity

The quantity of goods or services that are supplied and demanded at the equilibrium price.

World Price

Goods or services' market rates internationally, steered by the universal dynamics of supply and demand.

Domestic Consumers

Individuals or entities within a country that purchase goods and services.