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In the Markets for the Factors of Production in the Circular-Flow

question 214

True/False

In the markets for the factors of production in the circular-flow diagram, households are buyers and firms are sellers.


Definitions:

Hydrogen

A colorless, odorless, highly flammable gas, constituting the most abundant element in the universe and used in various industrial processes.

Oxygen

Oxygen is a chemical element with symbol O, essential for most life forms on Earth as part of the process of respiration and energy production within cells.

Capacity Constraint

Limitations on the resources available for production or service provision, impacting the maximum output achievable.

Plant Capacity

The maximum production output that a manufacturing facility can achieve under normal conditions.

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