The Figure Above Shows the Circular Flow Model

question 24

Multiple Choice

The figure above shows the circular flow model.
-Margo orders a MacBook Pro computer from The Apple Store online to use it in her graphic design business.How will this be reflected in the figure above?

• A) as a flow of a factor of production
• B) as a flow of goods and services bought
• C) as expenditures on goods and services
• D) as goods and services supplied
• E) It won't be shown in the figure because this transaction takes place neither in goods markets nor in factor markets.

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Definitions:

Managed Care

A healthcare delivery system aimed at managing cost, quality, and utilization of services by contracting with specific providers and implementing guidelines for treatment.

IRS Requirements

The legal and regulatory stipulations established by the Internal Revenue Service that individuals and organizations must follow.

Defined-Benefit Plan

A type of pension plan in which an employer promises a specified pension payment upon retirement, determined by a formula considering factors like salary and duration of employment.

Cash Balance Plans

A type of defined benefit pension plan that holds an employee's retirement savings as a hypothetical account balance, which grows annually through employer contributions and interest credit rates.