In the Circular Flow Model,rent,wages,interest,and Profit Paid Flow from ________

question 140

Multiple Choice

In the circular flow model,rent,wages,interest,and profit paid flow from ________ through ________ to ________.

• A) households; goods markets; firms as payment for goods
• B) firms; factor markets; households
• C) firms; goods markets; households
• D) households; factor markets; firms
• E) firms; goods markets; firms

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Definitions:

Preemptive Right

A shareholder's right to maintain their proportional ownership in a company by purchasing additional shares before they are offered to the public.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership stake in a corporation.

Common Stock

Equity securities that represent ownership in a company, providing voting rights and a share in the company’s profits through dividends.

Preferred Stock

A type of stock that typically guarantees dividends and has priority over common stock in asset liquidation.