The Simple Circular Flow Model Shows That Workers and Capital

question 112

Multiple Choice

The simple circular flow model shows that workers and capital owners offer their services to firms through the

• A)product markets.
• B)resource markets.
• C)money markets.
• D)financial markets.

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Definitions:

Future Outlay

Potential future spending or investments that a company plans to make, which may impact its financial position.

Opportunity Cost

The lost potential gain from other alternatives when one alternative is chosen.

Potential Benefit

The prospective advantage or gain that may be realized from a specific action or decision, often considered in planning and analysis.

Probability

A quantitative assessment of an event's probability, given as a number from 0 to 1.