The Lower Portion of the Circular Flow Model Contains Factor

question 78

Multiple Choice

The lower portion of the circular flow model contains factor markets in which households receive:

• A) output of all final goods and services produced.
• B) savings, spending, and investment.
• C) goods and services.
• D) wages, rents, interest, and profits.

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Definitions:

Replenishing

The act of refilling or restocking to maintain an adequate level of supplies or inventory.

Voucher System

A control mechanism in accounting that uses vouchers as evidence for transactions before they are posted to accounts, enhancing financial accuracy and integrity.

Prenumbered Voucher

A control mechanism used in accounting to ensure that all transactions are recorded and processed in a sequential manner, mitigating errors and fraud.

Expenditure

Money spent or cost incurred in an organization's efforts to generate revenue, representing the cost of doing business.