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Figure 2-2 -Refer to Figure 2-2.If Households Are Sellers in the Markets

question 2

Multiple Choice

Figure 2-2 Figure 2-2 -Refer to Figure 2-2.If households are sellers in the markets represented by Box D of this circular-flow diagram,then A) Box D must represent the markets for factors of production. B) Box C must represent the markets for goods and services. C) firms are buyers in the markets represented by Box D. D) All of the above are correct.
-Refer to Figure 2-2.If households are sellers in the markets represented by Box D of this circular-flow diagram,then

Definitions:

Constant Ratio

A strategy or measure that remains unchanged over a period of time, often used in financial contexts to describe stable investment proportions or fixed financial ratios.

Retained Earnings

Represents the portion of net income that is not distributed to shareholders but retained by the company for reinvestment in its operations or to pay debt.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders as dividends, typically expressed as a percentage.

Profit Margin

A financial metric that measures the extent to which a company or a business activity makes money, expressed as a percentage of revenues.