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.

Understand the criteria and financial reporting for short-term versus long-term investments.

Prepare journal entries for transactions involving international trade and foreign exchange.

Account for investments with significant influence over the investee's management and operations.

Recognize the difference between creditor and owner securities in the context of investment classification.

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Definitions:

Supply Chain Management

Supervising the progression of materials, finances, and information from the origin at the supplier, through the manufacturing process, onto wholesalers, retailers, and ending with the consumer.

Island

A piece of land surrounded by water, often used in various contexts such as geographical locations, metaphorical isolation, or data segmentation.

Supply Chain Management

The coordinated management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.

Independent Channels

Distribution channels operated by entities that are not directly controlled by the product manufacturer, allowing for a wider market reach.