In the Circular-Flow Diagram, Firms Own the Factors of Production

question 6

True/False

In the circular-flow diagram, firms own the factors of production and use them to produce goods and services.

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Definitions:

Utilitarians

Philosophers who believe that the best action is the one that maximizes utility, typically measured in terms of well-being of sentient entities.

Rigidity

Refers to inflexibility or stiffness in materials, or metaphorically to strictness in methods, rules, or systems.

Formalism

A philosophical and critical framework emphasizing form over content in various arts, mathematics, and science.

Kant's Philosophy

A philosophical doctrine by Immanuel Kant emphasizing rationality, ethics, and a categorical imperative guiding moral actions.