Figure 2-15 -Refer to Figure 2-15. One Segment of the Circular Flow

question 130

Multiple Choice

Figure 2-15
-Refer to Figure 2-15. One segment of the circular flow diagram in the figure shows the flow of wages and salaries from market K to economic agents M. What is market K and who are economic agents M?

• A) K = factor markets; M = households
• B) K = product markets; M = households
• C) K = factor markets; M = firms
• D) K = product markets; M = firms

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Definitions:

Short-term Profit-oriented

Focusing on immediate financial gain rather than long-term stability, growth, or investment.

Strategic Farsightedness

The ability to anticipate future trends, challenges, and opportunities and to plan long-term strategies accordingly.

Upward Communication

The process in which information flows from the lower levels of a hierarchy to the upper levels within an organization.

Formal Mission

A written statement that defines the core purpose and focus of an organization, guiding its decisions and operations.