An Example of a Real Flow in the Circular Flow

question 149

Multiple Choice

An example of a real flow in the circular flow diagram is

• A) a household's supply of work effort at its new business.
• B) the government's payment of wages to a soldier.
• C) Nike's payment of wages to workers in China.
• D) your county's collection of property taxes.
• E) a teacher's salary at the local high school.

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Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs to products.

Machine-Hours

A measure of production time using machines, typically used as a basis for allocating manufacturing overhead to products.

Denominator Level

In cost accounting, refers to the total quantity or capacity used to allocate fixed costs to different cost objects.

Budget Variance

The difference between what was budgeted for a period and what was actually spent or received.