Figure 2-16 -Refer to Figure 2-16. in the Circular Flow Diagram, Economic

question 244

Multiple Choice

Figure 2-16
-Refer to Figure 2-16. In the circular flow diagram, economic agents M represent

• A) households.
• B) product markets.
• C) firms.
• D) factor markets.

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Definitions:

Fixed Asset Additions

Expenditures involving the acquisition or improvement of long-term assets that increase the company’s operational capacity or extend the asset's useful life.

Accounts Receivable

Amounts owed by customers to a company for goods or services provided on credit.

Income Statement

An account that tracks a business's financial transactions, including income and expenditures over a designated timeframe, leading to a final profit or loss.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing shares, taking out loans, and paying dividends.