The Circular Flow Model Shows That

question 74

Multiple Choice

The circular flow model shows that

• A)households receive income from businesses in exchange for providing inputs and use the income to buy goods and services from businesses.
• B)businesses receive rent from households in exchange for providing goods and services and use the income to buy inputs from households
• C)households receive revenue for selling goods and services to businesses and use the revenue to buy inputs from businesses.
• D)businesses receive revenue for providing inputs to households and use the revenue to buy goods and services.
• E)businesses receive wages and interest, which they use to invest for the growth of an economy as a whole.

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Definitions:

Dynamic Billboards

Outdoor advertising structures that leverage digital technology to display changing images or messages to capture viewer attention.

Final Selling Price

The last price at which a product or service is sold to a customer, including all discounts, promotions, and negotiations.

Retailer's Cost

The total expense incurred by a retailer to purchase goods for resale, including purchase price, shipping, and handling.

Maintained Markup

Maintained markup refers to the percentage difference between the retail price and the cost of goods sold, maintained over a period for the purpose of covering expenses and achieving profit margins.