All categories

3 years ago

Which of the following best characterizes the circular flow of income?

Business

1 answer:

aivan3 [116]3 years ago

3 0

Answer:

2. Businesses buy resources from households, and households use their income from the sale of resources to buy goods and services from businesses.

Explanation:

The circular flow of income shows the flow of money and resocurces within an economy.

The household owns means of production and businesses buy them from households. Households earn income. The income earned is then used to purchase goods and services from the business.

I hope my answer helps you

You might be interested in

What is the most accepted time frame associated with the MOV SEP code?

shusha [124]

The inference is that the most accepted time frame associated with the MOV SEP code is 60 days or 2 months.

<h3>What is an inference?</h3>

An inference is the conclusion that can be deduced based on an information.

In this case, the inference is that the most accepted time frame associated with the MOV SEP code is 60 days or 2 months. This is the period when you can sign for health insurance.

Learn more about inference on:

brainly.com/question/25280941

#SPJ1

3 0

2 years ago

Potatoes cost Janice $1.00 per pound, and she has $6.00 that she could possibly spend on potatoes or other items. Suppose she fe

Minchanka [31]

Answer:

a. How many pounds of potatoes will she purchase?

3 pounds

Janice will purchase potatoes as long as the value she assigns to them is higher than the price of potatoes. She values the first 3 pounds at more than $1 per pound. But Janice only values the subsequent pounds of potatoes at $0.30 per pound and that is lower than their price.

b. What if she only had $3.00 to spend?

she would still buy the 3 pounds

5 0

3 years ago

The three economic questions that every society must answer are.

Mazyrski [523]

1 what will be produced?
2 how will it be produced?
3 how will the output society produces be distributed?

7 0

3 years ago

Tiger Trade has the following cash transactions for the period.

insens350 [35]

Answer:

Cash flow from operating activities

Cash inflows

Cash received from sale of products to customer $35,000

Cash received from sale of services to customer $25,000

Cash outflows:

Cash paid to merchandise suppliers ($11,000)

Cash paid to workers ($23,000)

Cash paid for advertisement ($3,000)

Net cash flow from operating activities $23,000

Cash flow from investing activities

Cash paid to purchase factory equipment ($45,000)

Cash received from sale of warehouse $12,000

Net cash flow from investing activities ($33,000)

Cash flow from financing activities

Dividend paid ($5000)

Cash received from bank loan $40,000

Net cashflow from financing activities $35,000

Net cash increase $25,000

Cash at the beginning of the year $4,000

Cash at the end of the year $29,000

7 0

3 years ago

On the first day of its fiscal year, Scooter Co. purchased a computer system for a total cost of $50,000. The computer system is

Gnom [1K]

Answer:

$20000

Explanation:

Given: Total cost of computer system= $50000.

Residual value= $5000.

Useful life= 5 years.

Now, calculating depreciation expense as per double-declining balance method.

$Depreciation\ expense= (cost- Accumlated\ depreciation)\times \frac{2}{useful\ life}$

⇒ $Depreciation\ expense= (\$ 50000- \$0)\times \frac{2}{5}$

⇒ $Depreciation\ expense= \$ 50000\times \frac{2}{5}$

∴ $Depreciation\ expense= \$ 20000$

Hence, $20000 is the depreciation expense for first year as per double-declining balance method.

8 0

3 years ago