Which Actor in the Simplified Circular Flow Model Is on the Supply

question 1

Multiple Choice

Which actor in the simplified circular flow model is on the supply side of the goods market?

• A) Firms
• B) Households
• C) Markets for factors of production
• D) Government

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Definitions:

Limited Liability

A legal structure that protects a company's owners or investors from being personally liable for the company's debts or liabilities beyond their investment in the company.

Partners

Individuals who share ownership of a business entity and are mutually obligated to the entity's liabilities and operational decisions.

Rights Of Partners

Rights of partners pertain to the entitlements and privileges granted to members of a business partnership, such as sharing profits, management participation, and access to information.

Personal Expenses

Costs for personal needs or consumption, not associated with business operations or expenses deductible for tax purposes.