Which of the Following Are Separate Flows in the Circular

question 42

Multiple Choice

Which of the following are separate flows in the circular flow model?

• A)the flow of goods and the flow of services
• B)the flow of costs and the flow of revenue
• C)the flow of income earned from the sale of resources and the flow of expenditures on goods and services
• D)the flow of income received by households and the flow of tax revenues paid by households

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Definitions:

Holding Cost

The expenses incurred for storing and maintaining inventory, including warehousing, insurance, and depreciation costs.

Monthly Demand

The total quantity of a product or service that consumers are willing and able to purchase within a calendar month.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on market conditions, customer characteristics, or the nature of the purchase.

Discounts

Reductions on the regular price of goods or services, usually offered to encourage purchases.