In the Circular Flow Model, Producers

question 51

Multiple Choice

In the circular flow model, producers

• A)sell goods and services in the input market.
• B)and households spend earnings from resource sales on goods and services in the factor market.
• C)hire resources sold by households in the factor market.
• D)spend earnings from resource sales on goods and services in the product market.

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Definitions:

Computer Chips

Small electronic components containing integrated circuits used in computers and other electronic devices to perform various functions.

Special Scanner

A device designed to capture images or information not typically handled by general-purpose scanners.

Just-in-time Systems

Inventory management strategy aimed at increasing efficiency and decreasing waste by receiving goods only as they are needed in the production process.

Inventories

The stocks of goods, components, or materials held by a business for the purpose of resale or production.