In the Circular Flow Diagram,________ Supply the Factors of Production,and

question 2

Multiple Choice

In the circular flow diagram,________ supply the factors of production,and ________ goods and services.

• A)households; sell
• B)households; buy
• C)firms; sell
• D)firms; buy

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Definitions:

Assets

Properties or items owned by an organization or a person, which have value and can offer future advantages.

Additional Investment

Additional funds put into a business or project by its owners or investors to support operations, growth, or capital needs.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership stake of the shareholders.

Drawings

Withdrawals of cash or other assets from a business by the owner for personal use, affecting the equity of the business.