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The Simple Circular-Flow Diagram Is a Model That Includes Only

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The simple circular-flow diagram is a model that includes only some key players in the real economy.Which of the following key players are omitted from the simple circular-flow model?


Definitions:

Cost

An amount that must be paid or spent to buy or obtain something, often related to the production or purchase of goods and services.

Merchandise

Merchandise refers to goods or products that are purchased, stored, and sold by businesses to generate revenue.

Net Purchases

The total amount of purchases made by a company after subtracting returns, allowances, and discounts.

Merchandise Available

The total goods available for sale during a certain period, including both beginning inventory and purchases made.

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