According to the Circular-Flow Diagram GDP

question 26

Multiple Choice

According to the circular-flow diagram GDP

• A)can be computed as either the revenue firms receive from the sales of goods and services or the payments they make to factors of production.
• B)can be computed as the revenue firms receive from the sales of goods and services but not as the payments they make to factors of production.
• C)can be computed as payments firms make to factors of production but not as revenues they receive from the sales of goods and services.
• D)cannot be computed as either the revenue firms receive or the payments they make to factors of production.

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Definitions:

Revenue

The sum of money a business earns from selling products or offering services over a specific period.

Payroll Functions

The activities involved in calculating and distributing wages, salaries, and deductions to employees.

Procedures

Established methods or protocols within an organization for conducting operations or tasks to achieve consistency and efficiency.