In a Simple Circular-Flow Diagram, Firms Own the Factors of Production

question 178

True/False

In a simple circular-flow diagram, firms own the factors of production and use them to produce goods and services.

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Definitions:

Adjusting Journal Entry

An accounting record entered at the closing of a financial period to distribute profits and losses to the correct period.

Five-Day Week

A work schedule that typically consists of five eight-hour days, totaling 40 hours, usually from Monday to Friday.

Biweekly Salaries

Salaries that are paid every two weeks, totaling 26 payments over the course of a year.

Payday

Payday refers to the specific day on which an employer distributes wages or salaries to employees.