In the Circular-Flow Diagram,which of the Following Items Flows from Firms

question 99

Multiple Choice

In the circular-flow diagram,which of the following items flows from firms to households through the markets for goods and services?

• A)goods and services
• B)dollars paid to land,labor,and capital
• C)dollars spent on goods and services
• D)wages,rent,and profit

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Definitions:

Perfect Certainty

A situation in decision making where all outcomes are known and there is no ambiguity or risk.

Immediate Profits

Earnings realized in the short term, reflecting the current operations of a business rather than long-term investments.

Marginal Product

The additional output generated by employing one more unit of a particular input, such as labor or capital.

Wage Rate

The rate at which labor is compensated by employers, typically expressed per hour or year.