In the Circular-Flow Diagram

question 224

Multiple Choice

In the circular-flow diagram,

• A)factors of production flow from government to firms.
• B)goods and services flow from households to firms.
• C)income paid to the factors of production flows from firms to households.
• D)spending on goods and services flows from firms to households.

Understand the concept of break-even analysis in units and dollars.

Calculate and interpret the effect of advertising and sales commissions on net operating income.

Understand and apply the concept of margin of safety in both dollars and as a percentage.

Calculate the sales level required to achieve a target profit.

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Definitions:

Social Media Firms

Companies that operate platforms allowing users to create and share content or participate in social networking.

Content Sharing

The act of distributing digital media, such as text, images, or videos, on various platforms or between users.

Bounce Rate

The percentage of times a visitor leaves the website almost immediately, such as after viewing only one page.

Visitors

Individuals who visit a place or attend an event, often tracked for marketing, web analytics, or customer service purposes.