Figure 2-9 -Refer to Figure 2-9.One Segment of the Circular Flow Diagram

question 19

Multiple Choice

Figure 2-9

-Refer to Figure 2-9.One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A.What is market C and who are economic agents A?

• A) C = factor markets; A = households
• B) C = product markets; A = households
• C) C = factor markets; A = firms
• D) C= product markets; A = firms

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Definitions:

Efficient Markets

A concept that asserts that financial markets are "informationally efficient," meaning that prices of securities reflect all available information at any given time.

Opportunity Cost

The cost of choosing one alternative over another, typically representing the benefits you could have received by taking a different action.

Alternative Use

The potential other applications or purposes for which a resource, asset, or investment could be utilized instead of its current use.