Multiple Choice QuestionIn the circular flow model, a small family run company is considered part of what sector?Multiple choice question.HouseholdsLabour.Business.Enterprise.
Question
Multiple Choice QuestionIn the circular flow model, a small family run company is considered part of what sector?Multiple choice question.HouseholdsLabour.Business.Enterprise.
Solution
In the circular flow model, a small family run company is considered part of the Business sector. This is because in this model, businesses are the entities that produce goods and services, while households are the consumers of these goods and services. Labour refers to the workforce, which can be part of both households (as individuals offering their labour) and businesses (as the entity employing and organizing this labour). Enterprise is a term often used interchangeably with business, but in this context, it does not represent a separate sector in the circular flow model.
Similar Questions
Which of the following sectors is responsible for making investments in the circular flow model? A. Household sector B. Financial sector C. Government sector D. Business sector
In the circular flow model:Multiple Choiceall of these hold true.households receive income through the factor market.households supply factors of production to firms.households spend income in the product market.
In the simple circular flow model:Multiple Choicebusinesses are suppliers of final products.there are real flows of goods, services, and factors, but not money flows.households are suppliers of final products.households are demanders of factors of production.
Select Any One Of the Following Options: In a typical circular flow model describing the interaction of businesses and households, which of the following is/are true? I. Households buy factors of production and goods II. Firms buy factors of production and goods III. Households buy factors of production IV. Firms buy factors of production V. Firms buy goods VI. Households buy goodsV and VI onlyI onlyIII and IV onlyIV and VI onlyII only
Item 5In the simple circular flow model:Multiple Choicehouseholds are demanders of factors of production.businesses are suppliers of final products.households are suppliers of final products.there are real flows of goods, services, and factors, but not money flows.
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