Figure 2-16 -Refer to Figure 2-16. One Segment of the Circular Flow

question 442

Multiple Choice

Figure 2-16
-Refer to Figure 2-16. One segment of the circular flow diagram in the figure shows the flow of labor services from market K to economic agents J. What is market K and who are economic agents J?

• A) K = factor markets; J = households
• B) K = product markets; J = households
• C) K = factor markets; J = firms
• D) K = product markets; J = firms

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Definitions:

Developmental Costs

Expenses associated with the research and development of a company's goods or services before they can be sold commercially.

Credit Account

is a financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.

Small Business Owner

A proprietor of a business enterprise that typically has a limited number of employees and a relatively low volume of sales.

Trade Credit

A financial arrangement where a buyer can purchase goods on account, paying the supplier at a later date, often used to improve cash flow.