In the Circular Flow Diagram, Households Demand ________ and Supply

question 129

Multiple Choice

In the circular flow diagram, households demand ________ and supply ________.

• A) labor; labor
• B) goods; services
• C) goods and services; labor
• D) labor; goods and services

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Definitions:

Market Value

The existing rate at which a service or asset is available for purchase or sale on the marketplace.

Paid-In Capital

Funds raised by a company from investors through the issuance of securities such as stocks, representing the capital contributed by shareholders in excess of the par value of the shares.

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of a corporation, after deducting liabilities.

Par Common Stock

The nominal or face value assigned to common stock shares, as stated in the corporate charter.