As Depicted in the Circular Flow Diagram, Firms

question 2

Multiple Choice

As depicted in the circular flow diagram, firms

• A) demand the goods and services that households supply in product markets.
• B) supply the goods and services that households demand in product markets.
• C) demand the resources that households supply in product markets.
• D) supply the resources that households demand in factor markets.

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Definitions:

Irritations

Irritations are minor annoyances or discomforts that can cause frustration or anger, often resulting from environmental factors or interpersonal interactions.

Hassles

Minor irritations and annoyances that are part of everyday life and can accumulate to cause stress.

Hassles

Minor irritations or annoyances that, taken cumulatively, can have a significant impact on an individual's stress level and overall psychological health.

Lazarus

Often associated with psychologist Richard Lazarus, known for his theory on emotion and stress appraisal.