The Two Basic Markets in the Simple Circular Flow Model

question 11

Multiple Choice

The two basic markets in the simple circular flow model are the

• A)product and resource market
• B)export and product market
• C)export and import market
• D)household market and the business market
• E)business market and the government market

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Definitions:

Demand-Oriented

An approach focusing on meeting customer demand through tailored products, pricing strategies, and distribution channels.

Incremental Analysis

An accounting method used to evaluate the financial impact of business decisions by analyzing the additional costs and benefits of changing from the current situation.

Quantity Discounts

Price reductions based on the number of units purchased, encouraging buyers to purchase in larger amounts.