A Money Flow in the Circular Flow Diagram Is

question 89

Multiple Choice

A money flow in the circular flow diagram is
i.the government's collection of taxes.
ii.Chevrolet's production of SUVs.
iii.Nike's payment of wages to its workers.

• A) i and iii
• B) i, ii and iii
• C) i only
• D) ii only
• E) ii and iii

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Definitions:

Variable Expenses

Expenses that vary directly with the amount of production or activity level.

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, remaining constant over a period, such as rent, salaries, and insurance premiums.

Net Operating Income

A gauge of a corporation's earnings from its main operating activities, not including the effects of interest and taxes.

Sales Increase

An upward trend in the volume or value of sales transactions over a particular period, indicating growth in business activity.