A Model That Shows How Dollars Flow Through Markets Among

question 89

Multiple Choice

A model that shows how dollars flow through markets among households and firms is called the

• A)production possibilities frontier.
• B)circular-flow diagram.
• C)demand and supply diagram.
• D)comparative advantage model.

---

Definitions:

Segmented Income Statement

An income statement that breaks down revenues, costs, and profits by specific segments, such as product lines or geographical markets, providing detailed insight into each part of the business.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume.

Trade-In Allowance

The amount credited to the buyer by the seller when the buyer trades in an old item towards the purchase of a new item.

Retain Or Replace

A decision-making process regarding whether to keep an existing asset or replace it with a new one, considering aspects such as costs, benefits, and performance.