An Example of a Real Flow in the Circular Flow

question 16

Multiple Choice

An example of a real flow in the circular flow diagram is

• A) Nike's payment of wages to workers in China.
• B) your council's collection of property taxes.
• C) a household's supply of work effort at its new business.
• D) the government's payment of wages to a soldier.
• E) a teacher's salary at the local high school.

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Definitions:

Per-unit Standards

Defined benchmarks for the amount of materials, labor, and overhead costs that should be used in producing a single unit of a product.

Direct Labor Hours

The total time workers spend directly manufacturing a product or providing a service.

Standard Direct Materials Costs

The expected or budgeted cost for direct materials which are those materials that can be directly associated with the manufacturing of a product.

Actual Costs

This refers to the genuine expenses incurred during the production or execution of a project, as opposed to estimated costs or budgeted amounts.