According to the Simple Circular-Flow Model, Which of the Following

question 123

Multiple Choice

According to the simple circular-flow model, which of the following do firms buy from households?

• A)natural resources, such as oil and minerals
• B)goods and services
• C)inventions and innovations
• D)labour

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Definitions:

Decrease in Financial Resources

A reduction in the amount of money, assets, or other financial means available to an individual or organization.

General Fund

A central and primary operating fund of a government, covering general operating expenses and services.

Accounting Records

Documentation and books that record all of the financial transactions of a business.

Property Taxes

Levies imposed by local governments on real estate owners based on the value of their property to fund public services such as schools, roads, and emergency services.