The Circular Flow Model for the Private Sector Shows That

question 103

Multiple Choice

The circular flow model for the private sector shows that

• A) business firms are the revenue source for consumers.
• B) financial intermediaries use the deposits from households to make loans to businesses.
• C) factors of production are demanded only by the government.
• D) net exports are always equal to zero.
• E) the goods and services produced by business firms are sold through resource markets.

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Definitions:

Higher Price

Selling products or services at a price point above the average market price or the initial offering price.

R&D-Manufacturing

The connection between research and development (R&D) activities and manufacturing processes, focusing on turning innovative ideas into tangible products efficiently.

Marketing Planning

The process of defining marketing strategies and tactics, and allocating resources to achieve marketing objectives.

Goals

Statements of an accomplishment of a task to be achieved, often by a specific time. Also called objectives.