In the Markets for Goods and Services in the Circular-Flow

question 239

Multiple Choice

In the markets for goods and services in the circular-flow diagram,

• A)households provide firms with savings for investment.
• B)households provide firms with labor, land, and capital.
• C)firms provide households with output.
• D)firms provide households with profit.

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Definitions:

Cash Discount

A reduction in the price of goods or services offered by the seller to the buyer for immediate payment or payment within a specified time frame.

Partial Payment

A payment made that is less than the total amount due for a bill or debt.

Pet Food

Specially formulated food intended for consumption by pets, such as dogs and cats, designed to meet their nutritional needs.

Cash Discount

A deduction from the invoice price that a seller allows a buyer to encourage prompt payment.