Because Every Transaction Has a Buyer and a Seller

question 226

Multiple Choice

Because every transaction has a buyer and a seller,

• A)GDP is more closely associated with an economy's income than it is with an economy's expenditure.
• B)every transaction contributes equally to an economy's income and to its expenditure.
• C)the number of firms must be equal to the number of households in a simple circular-flow diagram.
• D)firms' profits are necessarily zero in a simple circular-flow diagram.

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Definitions:

Value Chain Analysis

An analytical process for identifying each step in a business's operations and how they contribute to the overall value added to products or services.

Core Processes

The essential activities and operations that are crucial to an organization’s success and are typically aligned with its strategic goals.

Statistical Quality Control

The application of statistical methods and procedures to the monitoring and maintenance of the quality of products and services.

Work Variation Management

The process of identifying, analyzing, and mitigating the differences in work processes to ensure consistent and efficient operations.