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A "rational terrorist" will react to the increased security at U.S. airports by
Circular-Flow Diagram
A visual model of the economy that shows the flow of money, goods and services, and factors of production between households and businesses.
Firms
Businesses or companies that produce goods or provide services with the aim of making a profit.
Resources
Assets and inputs used to produce goods and services, such as time, labor, capital, and natural resources.
Factor Market
The marketplace for services of the factors of production (labor, land, capital) where these are bought and sold.
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