In the Markets for Goods and Services in the Circular-Flow

question 2

True/False

In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers.

---

Definitions:

Personal Control

An individual's belief in their ability to influence events and their outcomes, often associated with psychological well-being.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes, prompting an individual to seek consistency.

Stanley Milgram

A psychologist known for his studies on obedience, demonstrating people's willingness to follow orders from authority figures even to the extent of harming others.

Social Psychologist

A professional who studies how individual thoughts, feelings, and behaviors are influenced by the social environment and the presence of other people.