Which of the Following Statements Is True About a Simple

question 30

Multiple Choice

Which of the following statements is true about a simple circular flow model?

• A)Producers are neither buyers nor sellers in the product market.
• B)Households are neither buyers nor sellers in the input market.
• C)Producers are buyers in the factors market.
• D)Households are sellers in the product market.

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Definitions:

Checkbook Balance

The total amount of money available in an individual's checking account, as recorded in their checkbook.

Outstanding Checks

Checks that have been written and recorded in the accounting books but not yet cashed or cleared by the bank.

Automatic Transfer

A banking service that automatically moves funds from one account to another at scheduled times or under specific conditions.

Adjusted Cash Balance

The cash amount shown on a company's books after adjustments have been made for checks outstanding, deposits in transit, and other discrepancies.