Figure 2-2 -Refer to Figure 2-2.If Households Are Sellers in the Markets

question 2

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.If households are sellers in the markets represented by Box D of this circular-flow diagram,then

• A)Box D must represent the markets for factors of production.
• B)Box C must represent the markets for goods and services.
• C)firms are buyers in the markets represented by Box D.
• D)All of the above are correct.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the last items placed in inventory are the first ones sold.