In the Circular-Flow Diagram,which of the Following Items Flows from Firms

question 99

Multiple Choice

In the circular-flow diagram,which of the following items flows from firms to households through the markets for goods and services?

• A)goods and services
• B)dollars paid to land,labor,and capital
• C)dollars spent on goods and services
• D)wages,rent,and profit

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Definitions:

Market Interest Rate

The prevailing rate of interest available in the marketplace for borrowers and lenders, often influenced by factors like inflation, economic conditions, and federal monetary policies.

Selling Price

Selling price refers to the amount of money a buyer pays to acquire a product or service from a seller.

Carrying Value

The net amount at which an asset or liability is valued on the balance sheet, factoring in depreciation, amortization, or impairment costs.

Paid-in Capital

Capital received by a company in exchange for shares of stock, exceeding the par or stated value of the shares.