The Circular-Flow Diagram Shows the Flow of _____,The Flow of _____,And

question 298

Multiple Choice

The circular-flow diagram shows the flow of _____,the flow of _____,and the flow of_______.

• A)goods and services;factors of production;and markets
• B)households;firms;money
• C)money;goods and services;factors of production.
• D)factors of production;money;households.

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Definitions:

Perpetual Inventory System

An accounting method where inventory quantities and cost of goods sold are continuously updated with each sale or purchase transaction.

Merchandise On Hand

The inventory of goods that a company currently has available for sale.

Operating Expenses

The costs associated with running a company’s day-to-day operations, excluding the cost of goods sold, such as salaries, rent, and utilities.

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.