Figure 2-2 -Refer to Figure 2-2.Boxes C and D of This Circular-Flow

question 225

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.Boxes C and D of this circular-flow diagram represent

• A)households and government.
• B)firms and government.
• C)the markets for goods and services and the markets for financial assets.
• D)the markets for goods and services and the markets for factors of production.

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Definitions:

Statement Of Comprehensive Income

A financial statement that includes all income, expenses, and comprehensive income items, presenting a complete picture of a company's financial performance.

Non-cash Item

Expenses or income that do not result in an actual cash outlay or receipt, like depreciation, amortization, or stock-based compensation.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up.

Statement Of Comprehensive Income

A financial statement that presents a company's total income, including items that are not included in the net income.