In the Circular-Flow Diagram

question 113

Multiple Choice

In the circular-flow diagram:

• A)firms are sellers in the resource market and the product market
• B)households are sellers in the resource market
• C)firms are buyers in the product market
• D)spending on goods and services flow from firms to households

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Definitions:

Industrial Regulation

The government policies and rules designed to control or direct economic activity and market forces within specific industries.

Antitrust Policy

The use of the antitrust laws to promote competition and economic efficiency.

Social Regulation

Laws and regulations aimed at improving health, safety, and well-being in society, often implemented to correct market failures affecting the public interest.

Marginal Benefit

The additional satisfaction or value a consumer gains from consuming one more unit of a good or service.