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Phaenarete was
Circular-Flow Model
The circular-flow model is an economic diagram that illustrates how households and firms interact through markets for products and resources, depicting the continuous flow of money and resources.
Households
Economic units comprising individuals living together, making joint decisions about consumption and production.
Firms
Business entities or organizations engaged in commercial, industrial, or professional activities, either for profit or non-profit.
Market
Any structure that allows buyers and sellers to exchange types of goods, services, and information.
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