In the Circular-Flow Diagram,in the Markets for

question 103

Multiple Choice

In the circular-flow diagram,in the markets for

• A)goods and services,households and firms are both sellers.
• B)goods and services,households are sellers and firms are buyers.
• C)the factors of production,households are sellers and firms are buyers.
• D)the factors of production,households and firms are both buyers.

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Definitions:

Labor Force

The sum of individuals in the workforce, comprising both those who are employed and those who are actively looking for work.

State and Local Levels

Refers to the governance and administrative structures that operate below the national level, including state, provincial, or regional governments and local municipalities.

General Sales Tax

A broad-based tax imposed on the sale of goods and services, typically collected by the retailer and passed on to the government.

Incidence

The measure of the distribution of tax or subsidy burden amongst individuals or groups in an economy.