In the Circular-Flow Diagram, Payments for Labor, Land, and Capital

question 148

True/False

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

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Definitions:

Related Parties

Individuals or entities that have relationships with each other, affecting financial or operational decisions due to existing connections.

Lineal Descendants

Direct offspring of an individual, such as children, grandchildren, and great-grandchildren.

Involuntary Conversion

A process where an asset or property is replaced or converted into a similar asset or payment, often due to theft, destruction, or condemnation, without the owner's consent.

Like-kind Exchange

A tax deferment on the exchange of real property used for business or investment for another property of like kind.