In the Simple Circular-Flow Diagram, Who Are the Decision Makers

question 134

Multiple Choice

In the simple circular-flow diagram, who are the decision makers?

• A)firms and government
• B)households and firms
• C)households and government
• D)households, firms, and government

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Definitions:

Safety Stock

Additional inventory held by a company to prevent stockouts, usually due to uncertainties in supply and demand.

Master Budget

A comprehensive financial plan that combines all of the individual budgets related to sales, costs, expenses, assets, and liabilities.

Merchandise Purchases Budget

A financial plan detailing the amount of goods that a retail or wholesale company plans to buy over a certain period to meet anticipated sales.

Cash Budget

A financial plan that estimates cash flows over a specified period, helping businesses manage their cash resources effectively.