Households Are Vital to the Circular Flow Model in What

question 91

Multiple Choice

Households are vital to the circular flow model in what two ways?

• A) They supply factors of production and purchase goods and services.
• B) They export goods and services and import goods and services.
• C) They vote for political officers and pay taxes.
• D) They facilitate exchange between consumers and firms.

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Definitions:

Capital Structure

The combination of a corporation's long-term obligations, particular short-term liabilities, common stock, and preferred shares, employed to fund its general activities and expansion.

Net Present Value

A calculation used to determine the value of a future stream of income or expenses discounted back to the present value.