Which of the Following Is a Flow in the Circular

question 238

Multiple Choice

Which of the following is a flow in the circular flow model?

• A)the flow of goods and services from households to firms
• B)the flow of profit and the flow of revenue
• C)the flow of income earned by firms and the flow of expenditures earned by households
• D)the flow of revenue received by firms and the flow of payments to resource owners

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Definitions:

Cost

The amount that is spent to buy or produce something, including the resources and materials used.

Overhead Expenses

Costs associated with running a business that are not directly tied to producing goods or services, such as rent and utilities.

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operations.

Markdown

A reduction from the original or retail price of goods or services, typically to stimulate sales or clear out inventory.