In the Circular-Flow Diagram

question 206

Multiple Choice

In the circular-flow diagram,

• A)factors of production flow from government to firms.
• B)income paid to the factors of production flows from firms to households.
• C)goods and services flow from households to firms.
• D)inputs and outputs flow in the same direction as the flow of dollars, from households to firms.

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Definitions:

Conclusions

The final part of a document or process in which findings, decisions, or proposals are summarized or resolved.

Conceptual Framework

A set of theoretical principles and concepts that underpin and guide the standards, rules, and procedures of accounting and financial reporting.

Recognise

The accounting process of officially recording an item or transaction in the financial statements.

Monthly Payment

The amount of money that is paid on a monthly basis for the use of a service or repayment of a loan.