In the Circular-Flow Diagram,which of the Following Items Flows from Firms

question 244

Multiple Choice

In the circular-flow diagram,which of the following items flows from firms to households through the markets for the factors of production?

• A)goods and services
• B)land,labor,and capital
• C)dollars spent on goods and services
• D)wages,rent,and profit

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Definitions:

Output

The quantity of goods or services produced by a company during a specific period.

Indirect Labor

Labor costs not directly attributable to the production of goods or services, such as salaries for supervisors or maintenance staff.

Direct Labor-Hours

Direct labor-hours refer to the total hours worked by employees directly involved in producing a product.

Spending Variance

The difference between the budgeted amount of spending and the actual amount spent.