The Two Loops in the Circular-Flow Diagram Represent

question 20

Multiple Choice

The two loops in the circular-flow diagram represent

• A)the flow of goods and the flow of services.
• B)the flow of dollars and the flow of financial assets.
• C)the flow of inputs into production processes and the flow of outputs from production processes.
• D)the flows of inputs and outputs and the flow of dollars.

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Definitions:

Investment Centre

A segment or division within a company for which the manager has control and is responsible for its revenue, expenses, and assets, and return on investments.

Performance Measure

Metrics or indicators used to evaluate the effectiveness, efficiency, and success of an organization's activities or an individual's performance.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Revenue Centre

A segment, division, or unit of a business responsible for generating revenue, focusing on sales activities rather than profit or cost efficiencies.