In the Circular-Flow Diagram,the Places Where Resources,especially Capital and Labour,are

question 223

Multiple Choice

In the circular-flow diagram,the places where resources,especially capital and labour,are bought and sold are the:

• A) product markets.
• B) factor markets.
• C) households.
• D) firms.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity or volume of production in a business.

Rent

A payment made periodically by a tenant to a landlord in exchange for the use of land, a building, or other property.

Property Taxes

Taxes levied by local governments based on the assessed value of real estate property.

Monthly Profit

The total amount of income a business generates in a month after all expenses have been subtracted from total revenue.