Using this outline, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram.
Definitions:
Total Assets
The sum of all assets owned by a company, including both current and non-current assets, as reported on the balance sheet.
Stock Repurchase
A company's buyback of its own shares from the marketplace, usually to increase the value of remaining shares by reducing supply.
Book Value
The net value of a company's assets, subtracting its liabilities and intangible assets, often used to assess whether a stock is under- or overvalued.
Cash Dividend
A payment made by a corporation to its shareholders, usually as a distribution of profits.
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