The Following Question Are Based on the Following Circular Flow

question 53

Multiple Choice

The following question are based on the following circular flow diagram:

-In the circular flow model,income to the household is,from the point of view of the firm that pays this income,the same things as

• A) investment.
• B) savings.
• C) revenue.
• D) production costs.
• E) working capital.

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Definitions:

Wage

The fixed regular payment made by an employer to an employee, typically expressed on an hourly, daily, or piecework basis.

Bonus

An additional payment or reward given to employees or organizations, often as an incentive or reward for performance.

Management By Objectives (MBO)

Systematic approach that allows managers to focus on attainable goals and to achieve the best results based on the organization’s resources.

Performance Evaluation

The systematic assessment of an employee's job performance, skills, and productivity, typically for the purpose of decisions about promotions, compensation, and development.