In Terms of the Circular flOw Diagram, Households Make Expenditures

question 273

Multiple Choice

In terms of the circular flow diagram, households make expenditures in the _____ market and receive income through the _____ market.

• A) product; financial
• B) resource; product
• C) product; resource
• D) capital; product

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Definitions:

Competitive Firm

A company operating in a market where there are many buyers and sellers, each with negligible impact on market prices and conditions.

Profit-maximizing

The process of adjusting production and operational variables to achieve the highest possible profit margins.

Vertical Distance

The measure of the difference in height between two points, often used in mathematics and geography.

Unit Price

The cost per unit of quantity of a product, allowing consumers to compare prices between different sized packages of the same item.