- The Figure Above Shows the Circular Flow Model

question 5

Multiple Choice

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The figure above shows the circular flow model.

Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business. How will this be reflected in the figure above?

• A)As a flow of goods and services bought
• B)As goods and services supplied
• C)As a flow of a factor of production
• D)As expenditures on goods and services
• E)It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets.

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Definitions:

Accounts Payable Period

The mean duration for a company to settle payments with its suppliers and vendors.

Cash Flows

The entirety of capital movements entering and exiting a firm, significantly affecting its financial fluidity.

Controller

An executive role responsible for overseeing the accounting operations within a company, managing financial reporting, budgets, and internal controls.

Dissemination

The process of distributing or spreading information, knowledge, or data widely, especially to ensure accessibility to relevant stakeholders.