In the Simple Circular-Flow Model

question 130

Multiple Choice

In the simple circular-flow model:

• A) Goods and services are flowing through the resource market
• B) Firms produce and buy goods and services
• C) Households produce and sell goods and services
• D) Firms produce and sell goods and services
• E) Households own and buy resources

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Definitions:

HDC Status

A legal term describing the status of a holder in due course, who acquires a negotiable instrument under certain conditions, granting them rights free from many defenses.

Sufficient Consideration

Consideration in contract law that is adequate and meets legal requirements, ensuring the contract is binding and enforceable.

Promissory Note

A financial document in which one party promises to pay another party a specified sum of money at a defined future date or on demand.

Payable

Refers to the amount of money that is owed by an individual or organization and is due to be paid.