The Inner Loop of the Circular-Flow Diagram Represents the Flows

question 166

Multiple Choice

The inner loop of the circular-flow diagram represents the flows of inputs and outputs.Which of the following does not appear on the inner loop?

• A)wages
• B)land
• C)capital
• D)goods and services sold

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Definitions:

Discretionary

Refers to expenses or investments that are not essential for the operation of a home or business and can be reduced or eliminated if necessary.

Dividends

Disbursements from a corporation to its shareholders, typically originating from the firm's earnings.

Companies

Legal entities organized under state or national laws, typically formed to conduct business activities and generate profit for their owners or shareholders.

Cumulative Preferred Stock

A type of preferred stock where dividends accrue if not paid in a given year, and all accrued dividends must be paid before dividends can be paid on common stock.