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Define Basic Research and Applied Research

question 24

Essay

Define basic research and applied research. Give an example of each type, other than those mentioned in Chapter 2. How do these two types of research relate to each other?


Definitions:

Economy

An organized system of production, distribution, and consumption of goods and services within a specific geographical area, involving various agents and market forces.

Circular-Flow Diagram

A model that illustrates the flow of goods and services and money between households and businesses in an economy.

Households

Economic units comprising all persons who occupy a housing unit, responsible for making consumption and investment decisions.

Demanders

Individuals or entities that express a willingness and ability to purchase goods or services at a given price.

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