Which of the Following Entities Cause an Injection in the Circular

question 90

Multiple Choice

Which of the following entities cause an injection in the circular flow of income in the form of capital assets?

• A) The foreign sector.
• B) The government.
• C) Households.
• D) Firms.

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Definitions:

Profit-Maximizing

A strategy or approach used by firms to determine the price and output level that delivers the maximum profit.

Long-Run Equilibrium

A state in which all firms in a market are producing at their minimum long-run average cost, with no incentive to enter or exit the market.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for competition on factors other than price.

General Snacks

A broad category that includes various snack foods available in the market, without any specific branding implication.