In the Markets for the Factors of Production in the Circular-Flow

question 160

Multiple Choice

In the markets for the factors of production in the circular-flow diagram,

• A)households are sellers and firms are buyers.
• B)households are buyers and firms are sellers.
• C)households and firms are both buyers.
• D)households and firms are both sellers.

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Definitions:

Real-Life Application

Real-Life Application refers to the utilization of theoretical knowledge or concepts in practical, everyday situations.

Ethics

Ethics involves the systematizing, defending, and recommending concepts of right and wrong behavior, often guided by moral principles.

Bystander Effect

The phenomenon where individuals are less likely to offer help to a victim when other people are present.

Diffusion Of Responsibility

Occurs when a person fails to take responsibility for actions or for inaction because of the presence of other people who are seen to share the responsibility.