In the Simple Circular Flow Model Containing Just Households and Business

question 10

Multiple Choice

In the simple circular flow model containing just households and business firms,the entire product flows to ________ in exchange for ________.

• A)business firms,labor services
• B)business firms,wages
• C)households,consumer expenditures
• D)households,labor services

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Definitions:

Non-Controlling Interest

The equity in a subsidiary not attributable directly or indirectly to the parent company, often shown separately in the consolidated financial statements.

Carrying Value

The amount at which an asset or liability is recognized in the balance sheet, considering depreciation, amortization, or impairment.

Unamortized Premium

The portion of the bond premium that has not yet been amortized or gradually written off against earnings over the bond's life.

Par-Value Approach

An accounting method that assigns a nominal value to the shares of a corporation, which may bear no correlation to the market value of those shares.