In the Circular Flow of Income

question 185

Multiple Choice

In the circular flow of income

• A) households demand goods and services that are supplied by firms, and the firms demand factors that are supplied by intermediate firms.
• B) households demand goods and services that are supplied by firms, while supplying factors that are demanded by firms.
• C) households sell goods and services while firms sell factors.
• D) households buy goods and services while firms sell goods and services. Firms obtain labor from households, capital from government, and raw materials from other firms.

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Definitions:

Outcome Fairness

A concept in ethics and law where the focus is on the fairness of the results of a decision or a process, ensuring that all participants receive equitable treatment.

Amicable Discharge

A mutual agreement between an employer and an employee to end employment on good terms.

Employee Engagement

The degree to which employees are fully involved in their work and the strength of their commitment to their job and company.

Competitive Advantage

A unique attribute or ability a company has that enables it to outperform its competitors in the market.