BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Wage
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Salary
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Income
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Money
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Detailed explanation-1: -They are: Rent, wages, interest, and profit.
Detailed explanation-2: -Income – money received, e.g. wages, rent and interest. Investment (I) – money the Financial. sector lends to Firms to spend on. machinery, buildings and equipment.
Detailed explanation-3: -In exchange for their resources, households earn income. Each resource has its own income category. Households receive wages for their labor, rent for use of their land, interest for use of their capital, and profit for their entrepreneurial ability.
Detailed explanation-4: -In the basic (two-factor) circular flow model, money flows from households to businesses as consumer expenditures in exchange for goods and services produced by the businesses, then flows back from businesses to households for the labor that individuals provide.
Detailed explanation-5: -Money can be traded for goods and services. According to this diagram showing the circular flow of goods and resources, where do individuals spend the income they earn? goods and services.