Which Actor in the Simplified Circular Flow Model Is on the Supply

question 12

Multiple Choice

Which actor in the simplified circular flow model is on the supply side of the factor market?

• A) Firms
• B) Households
• C) Market for goods and services
• D) Government

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Definitions:

Conceptual Framework

A system of ideas and objectives that guide the development, preparation, and interpretation of financial reporting and accounting standards.

AASB 15

An Australian Accounting Standards Board standard on revenue from contracts with customers, specifying how and when to recognize revenue and the related costs.

IFRS 15

The International Financial Reporting Standard that specifies how and when to recognize revenue from contracts with customers, setting requirements for the disclosure of revenue information.