In the Circular Flow Model

question 70

Multiple Choice

In the circular flow model,

• A)households are sellers of factor services in goods markets.
• B)households are buyers of goods and services in the factor markets.
• C)firms are sellers of the factors in factor markets.
• D)firms are sellers of goods and services in goods markets.
• E)firms are buyers of goods and services in final markets.

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Definitions:

General Partners

Individuals in a partnership who are responsible for the management of the partnership and are liable for its debts.

Foreign Limited Partnerships

Partnerships formed in one jurisdiction but doing business in another where the liability of some partners is limited.

Low-profit Limited Liability Company

A classification of LLC that combines the legal and tax flexibility of a traditional LLC, the social benefits of a nonprofit organization, and a commitment to limited profit distribution.

Socially Beneficial

Refers to actions, policies, or practices that have a positive impact on society or the community as a whole.