In the Circular Flow Diagram, Firms' Payments ________ the Government

question 120

Multiple Choice

In the circular flow diagram, firms' payments ________ the government.

• A) only flow into
• B) flow into and out of
• C) only flow out of
• D) do not affect

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Definitions:

Least Costly Combination

An economic principle that firms seek to achieve by using the combination of factors of production that minimizes their costs while producing a given level of output.

Marginal Product Data

Information regarding the additional output that can be obtained by adding one more unit of a particular input, holding all other inputs constant.

Units of Output

are the measurable quantities of goods or services produced by a firm or economy.

Maximization of Profits

The process by which a company determines the price and output level that generates the most profit.