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In the Circular-Flow Diagram, the Two Types of Markets in Which

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In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.


Definitions:

Inferior

A term used in anatomy to describe a structure or location that is below or lower than another part of the body; opposite of superior.

Posterior

Situated behind or at the back part of an organism or structure, opposite of anterior.

Lateral

Pertaining to the side of an organism or structure, often used in medical and anatomical descriptions.

Nose

An external protrusion on the face that houses the nostrils and is associated with the sense of smell and breathing.

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