Which of the Following Is an Example of Spending on Goods

question 61

Multiple Choice

Which of the following is an example of spending on goods and services in the circular flow model?

• A)Belinda purchases a new computer for her tax-preparation business.
• B)Javier buys 800 square feet of wood flooring for his vacation home.
• C)Celeste buys fresh herbs at the farmers' market to use in her restaurant.
• D)Timmy purchases a new examination table for use in his veterinary clinic.

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Definitions:

Supplier-Customer Relationships

This term refers to the interactions and dealings between a business that provides products or services and its buyers.

Conglomerate Merger

A merger between firms that are involved in totally unrelated business activities.

Economic Benefits

The advantages gained from financial activities, including income, profits, and savings, as well as non-monetary gains like improved well-being or productivity.

Consolidation

The process of combining multiple entities or accounts into a single entity or account, often for financial reporting purposes.