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.

---

Definitions:

Operating Loss

A loss that occurs when a company's operating expenses exceed its revenues.

Carryback Provision

A tax provision allowing companies to apply a current year's net operating losses to past years' profits for potential tax refunds, offsetting taxable income in profitable years.

Operating Losses

Losses that occur when a company's operating expenses exceed its revenues over a specific period, indicating that the core business activities are not generating sufficient income.

Income Tax Rate

The proportion of income that is taken as tax from a person or company.