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

question 153

Multiple Choice

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

• A)households provide firms with labor,land,and capital.
• B)households provide firms with savings for investment.
• C)firms provide households with goods and services.
• D)firms provide households with revenue.

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Definitions:

Norms

The informal understandings that govern the behaviors of members of a society or group, often guiding acceptable and expected actions.

Knowledge Management

The process of capturing, developing, sharing, and effectively using organizational knowledge.

Capturing

Involves the process of obtaining and securing something of interest or value, often used in contexts like data capture or wildlife conservation.

Distributing

Distributing involves the process of delivering products, services, or information from the point of production or origin to the end user or consumer.