Which of the Following Is FALSE About the Circular-Flow Diagram

question 118

Multiple Choice

Which of the following is FALSE about the circular-flow diagram?

• A)Households are the primary demanders of goods and services.
• B)Firms are the primary suppliers of goods and services.
• C)Money flows from households to firms as households offer factors of production for sale.
• D)Money flows in the direction opposite to goods and services and factors of production.

Recognize the impact of product development decisions on a company's market share and sales volume.

Identify various stages of a product’s life cycle and the strategic approaches during each stage.

Define and differentiate between product line and product mix.

Distinguish between goods and services within marketing contexts.

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Total Cost

The complete cost of production, including both fixed and variable costs.

Efficient Allocation

The optimal distribution of resources among different uses, ensuring that resources are utilized in a way that maximizes overall benefit or utility.

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been designed for, often leading to inefficiencies.