-Refer to the Figure

question 22

Multiple Choice

-Refer to the figure.If box A represents businesses and flow (7) represents goods and services,then:

• A) box D is the product market and box B is the factor market.
• B) box D is the product market and box B is households.
• C) box B is the product market and box C is households.
• D) box C is the product market and box B is the factor market.

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Definitions:

Smuggled

Illegally transported goods or persons across borders to avoid customs duties or immigration restrictions.

Transit

The act of moving people or goods from one location to another, typically referring to public transportation systems.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.

Fine Imposed

A monetary penalty levied by an authority as punishment for a violation or infringement.