Which of the Following Is an Example of Spending on Goods

question 175

Multiple Choice

Which of the following is an example of spending on goods and services in the circular flow model?

• A)Micah purchases a new wrench for his auto repair business.
• B)Chester buys a first-class ticket from Atlanta to London for his long-awaited vacation.
• C)Toby buys a new lawn mower to use in his lawn care business.
• D)Lily purchases a new massage table for use in her therapy center.

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Definitions:

Labor Relations

The relationship and negotiations between employers and their employees, often involving unions.

Terminating

The act of bringing something to an end or conclusion, often used in the context of contracts, employment, or processes.

Practice Budget

The financial plan for the operation of a medical practice, outlining the expected revenues and expenditures.

Revenues

Income generated from business activities or services before any expenses are deducted.