Figure 2-2 -Refer to Figure 2-2.Boxes C and D of This Circular-Flow

question 225

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.Boxes C and D of this circular-flow diagram represent

• A)households and government.
• B)firms and government.
• C)the markets for goods and services and the markets for financial assets.
• D)the markets for goods and services and the markets for factors of production.

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Definitions:

Fair Market Value

The cost at which a property would be exchanged in a competitive bidding environment.

Incorporation Services

Services offered by certain companies or legal entities that assist individuals or other entities in forming a corporation.

Fixtures

Items of property that are attached to a building or land in a way that makes them a legally part of that property, such as lighting systems or cabinetry.

Par Common Stock

The nominal or face value assigned to a share of common stock in the corporate charter, which may differ from the market value.