-Refer to the Circular Flow Model of the Economy

question 46

Multiple Choice

-Refer to the circular flow model of the economy.In the diagram flow (1) represents:

• A) wage,rent,interest,and profit income.
• B) land,labour,capital,and entrepreneurial ability.
• C) goods and services.
• D) consumer expenditures.

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Definitions:

Warranty Expense

Costs associated with the obligation of a company to repair, replace, or compensate for defective goods sold to customers.

Warranty Liability

Warranty liability is an obligation that a company assumes when it promises to repair or replace defective products during a specified period, representing a potential future expense.

Federal Unemployment Tax

A payroll tax paid by employers based on the wages paid to employees, used to fund state workforce agencies.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.