The Two Basic Markets in the Simple Circular Flow Model

question 11

Multiple Choice

The two basic markets in the simple circular flow model are the

• A)product and resource market
• B)export and product market
• C)export and import market
• D)household market and the business market
• E)business market and the government market

---

Definitions:

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, detailing assets, liabilities, revenue, and expenses over a specific period.

Permanent/Temporary

Used to classify accounts, with permanent accounts being those that carry their balances over into the next fiscal year, and temporary accounts being closed at the end of the fiscal year.

Normal Balance

The typical or usual balance of an account, which can be a debit for asset and expense accounts, or a credit for liability, equity, and revenue accounts.

Financial Statement

Comprehensive reports that provide information regarding a company's financial performance and condition.