Use the Following to Answer Questions

question 188

Multiple Choice

Use the following to answer questions:
Figure: Expanded Circular-Flow Model
-(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. Which of the following is NOT a sector of the economy shown in the circular-flow model?

• A)households
• B)firms
• C)the rest of the world
• D)factor markets

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Definitions:

Data Latching

A technique used to read the value of the input data that will be operated on by the instructions with a function block.

Credit Risk

The possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations.

Bond Issuer

The entity, either a corporation or a government, that borrows funds by selling bonds and is obligated to pay interest on them as well as repay the principal amount at maturity.

Closed Economy

An economy that does not engage in international trade with other economies, neither importing nor exporting goods and services.