According to the Circular Flow Model, Product Markets Are Where

question 67

Multiple Choice

According to the circular flow model, product markets are where

• A)households earn their money incomes.
• B)households acquire economic resources from businesses.
• C)businesses acquire their inputs from households.
• D)businesses earn their revenues from households.

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Definitions:

Net Present Value

A valuation method that calculates the present worth of cash flows by discounting future cash flows to their present value.

Average Rate

In finance, it typically refers to the mean rate of return or interest rate over a specific period. It can also mean the average exchange rate over a period for currency conversion.

Capital Investment

Funds invested in a business with the expectation of future benefits, such as acquiring new equipment, buildings, or other resources to generate income.

Net Present Value

A method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.