In the Circular flOw Model, the Factors of Production Are

question 87

Multiple Choice

In the circular flow model, the factors of production are owned by _____.

• A) firms
• B) the government
• C) a few rich industrialists
• D) households

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Definitions:

Oligopolists

Firms or individuals that are part of an oligopoly, a market structure characterized by a small number of firms dominating the market.

Oligopolistic Markets

Market structures dominated by a small number of large firms, leading to limited competition and high barriers to entry.

Cooperation

The process of groups or individuals working together towards a common goal, often leading to mutual benefit.

Self-Interest

The motivation driving individuals to pursue their own welfare, often guiding economic decisions and behaviors.