In the Circular flOw Model, Households Offer the Services of Factors

question 10

True/False

In the circular flow model, households offer the services of factors of production to firms in return for income.

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Definitions:

Average Product

An economic measure of the output per unit of input, such as labor or capital.

Total Product

The overall quantity of output that a firm produces, typically within a specific time period, given a certain amount of inputs.

Total Product

The total quantity of output produced by a firm over a given period of time.

Units of Labor

Quantifiable measurements of labor force input, such as hours worked or number of workers, used in economic analysis to assess productivity or costs.