In the Simple Circular Flow Model, the Two Markets Are

question 10

Multiple Choice

In the simple circular flow model, the two markets are:

• A) capital goods and consumer goods markets.
• B) goods and services markets.
• C) product and resource markets.
• D) households and firms markets.
• E) domestic and foreign markets.

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Definitions:

Horizontal Restraint

A term used in antitrust law to describe practices that restrict competition among firms operating at the same level of the market, such as price-fixing agreements between competitors.

Predatory Pricing

A pricing strategy where a product or service is set at a very low price with the intent to drive competitors out of the market or create barriers to entry for potential new competitors.

Tying Arrangement

A sales agreement in which the sale of one product is dependent on the buyer purchasing another product.

Competitive Harm

Refers to damage or disadvantage caused to a competitor or the competitive landscape by anti-competitive practices or behaviors.