Figure 2-2 -Refer to Figure 2-2.The Figure Represents a Circular-Flow Diagram.If Households

question 87

Multiple Choice

Figure 2-2

-Refer to Figure 2-2.The figure represents a circular-flow diagram.If households are buyers in the markets represented by Box C,then

• A)Box C must represent the markets for the factors of production.
• B)Box D must represent the markets for goods and services.
• C)firms are sellers in the markets represented by Box C.
• D)All of the above are correct.

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Definitions:

Distributor

An entity that buys non-competing products or product lines, warehouses them, and resells them to retailers or direct to the end users or customers.

Intermediaries

Intermediaries are agents or businesses that act as middlemen in the distribution process, linking producers with consumers or other businesses.

Retailer

A business entity that sells goods or commodities directly to consumers, typically in small quantities.