As the Circular Flow Model Shows,the Factors of Production Flow

question 46

Multiple Choice

As the circular flow model shows,the factors of production flow from

• A) firms to households through the factor market.
• B) households to firms through the factor market.
• C) firms to households through the goods market.
• D) households to firms through the goods market.
• E) the goods market through firms to the factor markets.

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Definitions:

Financial Advantage

Refers to the benefit or upper hand that a business or individual has in a financial situation, often leading to better profitability or investment outcomes.

Common Fixed Costs

Costs that are shared by several segments, products, or projects of a company, not attributable directly to any individual segment.

Divisions

Separate units within a larger company, often structured around specific products, geographical locations, or market segments, each potentially with its own management.

Segment

Any part or activity of an organization about which managers seek cost, revenue, or profit data.