Refer to the Above Figure

question 28

Multiple Choice

Refer to the above figure. If box A represents households, B the product market, and C businesses, and if flow (3) represents revenues, then flow (1) would represent:

• A) Costs
• B) Money income
• C) Consumption expenditures
• D) Resources

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Definitions:

Indifference Curves

Graphical representations of different bundles of goods between which a consumer is indifferent, showing preferences.

Consumption Bundle

A set of goods or services that an individual considers purchasing, given their income and the prices of those goods/services.

Indifference Curves

Graphs representing different combinations of goods that give a consumer equal levels of satisfaction, thereby indicating their preferences.

Bundle

A combination of different goods or services that are sold together as a single package.