In the Simple Circular-Flow Diagram,what Do Markets Consist Of

question 17

Multiple Choice

In the simple circular-flow diagram,what do markets consist of?

• A)the market for goods and services, the financial market, and the market for the factors of production
• B)the market for the factors of production and the financial market
• C)the market for goods and services and the financial market
• D)the market for goods and services and the market for factors of production

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Definitions:

Note Payable

Note payable is a written promise to pay a specified amount of money, often with interest, by a certain date, serving as a formal loan agreement between a borrower and a lender.

Factory Equipment

Durable goods or machinery used in manufacturing processes, typically involving production or maintenance tasks.

Indirect Method

A type of cash flow reporting in financial statements where net income is adjusted for changes in balance sheet accounts to calculate the cash flow from operating activities.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of an entity, such as issuing stock or obtaining loans.