As the Circular Flow Model Shows,the Factors of Production Flow

question 46

Multiple Choice

As the circular flow model shows,the factors of production flow from

• A) firms to households through the factor market.
• B) households to firms through the factor market.
• C) firms to households through the goods market.
• D) households to firms through the goods market.
• E) the goods market through firms to the factor markets.

Understand the role of management at different levels in the planning process.

Comprehend how planning facilitates the controlling function in management.

Distinguish between single-use plans and standing plans.

Know the purpose and function of policies, procedures, and budgets in organizational planning.

---

Definitions:

Monopolistically Competitive

This refers to a market structure characterized by many firms selling products that are similar but not identical, allowing for slight differentiation and some degree of pricing power.

Inelastic Demand

A scenario in which the demand for a product or service shows minimal fluctuation in response to price alterations.

Four-Firm Concentration

The Four-Firm Concentration ratio measures the market share of the four largest firms within an industry, indicating the level of market concentration and competitive landscape.

Pure Competition

A market structure characterized by a large number of sellers offering identical products with no single seller able to influence the market price.