In the Circular-Flow Diagram,a Firm Is An

question 187

Multiple Choice

In the circular-flow diagram,a firm is an:

• A)organization that produces goods or services for sale.
• B)individual or a group of people who share their income.
• C)organization that sells factors of production.
• D)organization that purchases goods and services.

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Definitions:

Investment Account

An Investment Account is a financial account held by an investor with a brokerage firm, bank, or custodian that holds securities and other investments.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Dividends

Payments made by a corporation to its shareholder members, typically in the form of cash or additional shares.

Depreciation Expense

A method to allocate the cost of a tangible asset over its useful life.