The Inner Loop of the Circular-Flow Diagram Represents the Flows

question 166

Multiple Choice

The inner loop of the circular-flow diagram represents the flows of inputs and outputs.Which of the following does not appear on the inner loop?

• A)wages
• B)land
• C)capital
• D)goods and services sold

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Definitions:

Initial Value Method

An accounting method for investments where the investment is recorded and maintained at its original cost without adjustment for changes in market value.

Common Stock

Equity ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Equity Method

An accounting technique used to assess the profits earned by investments in other companies, where the investment income is proportional to the ownership stake.

Common Stock

A type of equity security that represents ownership in a corporation, with holders entitled to vote on corporate matters and receive dividends.