Households and Firms in the U

question 85

Multiple Choice

Households and firms in the U.S.economy interact with those in the rest of the world in the ________ market and in the ________ market.

• A) goods; factor
• B) goods; financial
• C) government; goods
• D) financial; factor
• E) firm; government

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Definitions:

Business Location

The physical or virtual place where a company operates its activities.

Recognized Loss

A realized loss that occurs when an asset is sold for less than its book value.

Trade-In Allowance

The value a seller offers for a buyer's old item as part of the payment for a new item, thereby reducing the cash payment needed.

Accumulated Depreciation

Represents the total depreciation expense that has been recorded against a fixed asset since it was acquired, reducing its book value on the balance sheet.