Asked by
Cayla Wilson
on Nov 25, 2024Verified
In the circular flow diagram, firms get their ability to pay for the costs of production from the
A) revenues they receive for their products.
B) resources they acquire in the resource markets.
C) incomes they earn for their resources.
D) goods and services they get in the product markets.
Production Costs
Production costs are the expenses incurred in the process of creating a product or service, including raw materials, labor, and overhead costs.
Circular Flow Diagram
A visual model that shows how goods, services, and money move through an economy in a circular manner between households and firms.
Firms
Business organizations or entities engaged in commercial, industrial, or professional activities with the goal of generating profits.
- Master the principal components and their activities in the circular flow framework of a market-oriented economy.
- Discern the responsibilities of households and businesses within the market system.
Verified Answer
MT
Learning Objectives
- Master the principal components and their activities in the circular flow framework of a market-oriented economy.
- Discern the responsibilities of households and businesses within the market system.