The Two Basic Markets Shown by the Simple Circular Flow

question 50

Multiple Choice

The two basic markets shown by the simple circular flow model are:

• A)capital goods and consumer goods.
• B)free and controlled.
• C)product and factor.
• D)household and business.

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Definitions:

Agreement

A mutual understanding or arrangement, typically formalized into a contract, between two or more parties about what each will do for the other.

Stroking Technique

A method used in communication or therapy that involves positive reinforcement to encourage desired behavior.

Conflict

A situation where there is a clash of interests, values, actions, views, or directions between two or more parties.

Positive

Characterized by the presence or possession of features or qualities rather than their absence, often associated with constructive, optimistic, or favorable outcomes or attitudes.