According to the Circular-Flow Diagram,if Denny Is the Owner of a Landscaping

question 88

Multiple Choice

According to the circular-flow diagram,if Denny is the owner of a landscaping business and he just received $50 for mowing Mrs.Pendleton's lawn,

• A)the $50 represents a cost of production for Denny's firm.
• B)the $50 represents wages,rent,and profit to Denny's firm.
• C)Denny acts as a firm who interacted in the markets for factors of production with Mrs.Pendleton.
• D)Denny acts as a firm who interacted in the markets for goods and services with Mrs.Pendleton.

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Definitions:

Walking Purchase

A controversial 1737 agreement where Pennsylvania colonists claimed to have purchased land from the Lenape Indians based on the distance covered in a day and a half walk, significantly expanding colonial territory.

Delaware Indians

A Native American tribe originally located in the Delaware River area, also known as the Lenape.

Beaver Pelts

Beaver pelts refers to the fur of beavers, which was highly sought after for the manufacture of hats and garments, especially in the 17th and 18th centuries, driving the North American fur trade.