In the Circular Flow Model, Profits Are Considered to Be

question 290

Multiple Choice

In the circular flow model, profits are considered to be

• A) a subtraction from the Gross Domestic Product (GDP).
• B) a cost of doing business.
• C) equal to zero, or else the circular flow would be out of balance.
• D) a form of interest payment.

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Definitions:

Service Risk

The possibility of experiencing losses or failures when delivering or receiving services, due to variability in service quality, delivery, or customer satisfaction.

Proprietary Technology

Unique technology owned by a company, protected by patents or trade secrets, giving them a competitive advantage.

HR Functions

Encompass a wide range of activities related to the management of an organization's human resources, including recruitment, selection, performance management, and employee development.

Increase Productivity

This term refers to the efforts or strategies aimed at boosting the efficiency and output of individuals or systems within an organization or economic context.