In the Circular-Flow Diagram

question 192

Multiple Choice

In the circular-flow diagram,

• A)firms are buyers in the markets for goods and services.
• B)households are sellers in the markets for the factors of production.
• C)firms are sellers in the markets for factors of production and in the markets for goods and services.
• D)dollars that are spent on goods and services flow directly from firms to households.

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Definitions:

Bullwhip Effect

A phenomenon where inaccurate or distorted information in a supply chain causes overreaction and variability in orders, often leading to inefficiency and excess inventory.

Weighted Total

A calculated total in which different components are given different levels of importance or weight, often used in assessments or decision-making processes.

Lot Size

Refers to the set quantity of items that are processed, ordered, or produced together at a time.

Categories Score

refers to the rating or evaluation assigned to various categories within a framework, often used to assess performance or quality.