Households

question 87

Multiple Choice

Households

• A)have no involvement in the circular flow in a market economy.
• B)purchase resources in the factor market.
• C)sell goods in the product market.
• D)sell resources in the factor market.

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Definitions:

Fixed Overhead

The total of all costs that remain constant regardless of the level of production or business activity.

Sales Budget

A detailed forecast of an organization's sales revenue, including units sold and revenue expected for a particular period.

Unit Sales

The total quantity of items sold by a business within a specific period.

Cash Sales

Transactions in which goods or services are paid for at the time of sale with cash or its equivalent, without credit.