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A Real Flow in the Circular Flow Diagram Is

question 61

Multiple Choice

A real flow in the circular flow diagram is
i.a firm's payments of wages to its workers.
ii.a household's purchase of a new car.
iii.a farmer's use of land to grow corn.


Definitions:

Monopoly

A market framework in which there is only one seller offering a distinctive product to the market.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

Marginal Cost

The added financial burden incurred by manufacturing one more good or service unit.

Government Rules

Regulations and guidelines established by government authorities to govern behavior, enforce standards, and protect the public interest.

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