As the Circular Flow Model Shows,the Factors of Production Flow

question 65

Multiple Choice

As the circular flow model shows,the factors of production flow from

• A)the goods market through firms to the factor markets.
• B)households to firms through the factor market.
• C)firms to households through the goods market.
• D)firms to households through the factor market.
• E)households to firms through the goods market.

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Definitions:

Direct Labor Hours

The total number of work hours spent by employees who directly manufacture or produce goods.

Predetermined Overhead Rate

An estimate used to allocate overhead costs to products or job orders, calculated before the costs are incurred.

Finished Goods

Items that are finished with the production phase but are still awaiting sale or delivery to consumers.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor costs.