The Inner Loop of the Circular-Flow Diagram Represents the Flows

question 166

Multiple Choice

The inner loop of the circular-flow diagram represents the flows of inputs and outputs.Which of the following does not appear on the inner loop?

• A)wages
• B)land
• C)capital
• D)goods and services sold

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Definitions:

Direct Labor

The wages paid to workers who are directly involved in the production or manufacture of goods or services.

Direct Materials

Raw materials that can be directly attributed to the production of finished goods.

Relevant Range

The spectrum of operations within which the behaviors of variable and fixed costs are considered accurate.

Operating Decisions

Definition: Decisions made by management related to the day-to-day operations of a company, including costs, production, and pricing strategies.