In the Circular Flow example, some Households have Labor (and possibly other) resources that are <u>under-employed</u> and, therefore, receive fewer Goods and Services in a Market-based economy.
A circular flow model is a diagram that is used to represent monetary transactions in an economy. It shows how money, goods, and resources move through a market economy.
Thecircular flowis the exchange of money between firms and households.
The main factors in the circular flow of economic activity are households (or individuals), firms, and the government.
The correct answer is choice d, collaboration is not one of the five cs of pricing.
Of the options listed, collaboration is not one of the Five Cs of pricing. The five Cs of pricing include customers, channel members, cost, company objectives and competition.
Producer surplus is the difference between the price of a good and the cost to sellers. It is the difference between price and the least amount sellers would be willing to sell their products.
Consumer surplus is the difference between the price at which the consumer values the good and the price of the good.
Consumer surplus = Value to buyers - Amount paid by buyers.
Since Henrietta received the stocks on June 1, 2015, and sold them on January 1, 2016, only 7 months had passed, therefore, this transaction would be considered a short term capital gain.
When a gift is sold (in this case the stocks), a taxpayer can use the basis for computing gains. If the stocks were sold at a loss, Henrietta should use the lower value (at the moment of the gift) to determine her loss.