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Which of the Following Transactions Is Represented by the Diagram

question 70

Multiple Choice

Which of the following transactions is represented by the diagram below? Which of the following transactions is represented by the diagram below?   A)  A junkyard holds weekly sales where it sells its entire inventory. B)  A shoe store sells products to consumers. C)  A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it on Amazon.com. D)  Netflix sells movies to consumers through its online downloading service.


Definitions:

Positive

In the context of economic analysis, it often refers to a fact-based approach that attempts to describe how economic systems actually work without making judgments about their desirability.

Circular-Flow Diagram

A model that illustrates the movement of goods, services, and money between households and businesses in an economy.

Factor Market

A marketplace where services of the factors of production (labor, land, capital) are bought and sold.

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the government.

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