In the Circular Flow Diagram, Households Get Their Ability to Pay

question 219

Multiple Choice

In the circular flow diagram, households get their ability to pay for their consumption expenditures from the

• A)revenues they receive for their products.
• B)costs they incur for resources.
• C)incomes they earn for their resources.
• D)goods and services they get in the product markets.

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Definitions:

Unilateral Contract

An agreement in which a promise by one party is exchanged for an act performed by the other party.

Executed

A term applied to a contract in which all of the terms have been fully performed.

Implied-In-Law

A legal obligation arising not from explicit agreement but from a duty inherent in social or legal traditions.

Without Reserve

An auction term indicating that an item will be sold to the highest bidder regardless of the price, without any minimum bid restriction.