Using this outline,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram. 
Definitions:
Partnerships
A lawful business arrangement involving two or more people who divide both the management responsibilities and the earnings.
Residual Income Claimants
Individuals or entities entitled to the income that remains after all other expenses and obligations have been met, typically referring to owners or shareholders.
Operational Efficiency
The ability of an organization to minimize inputs and costs while maximizing outputs and services.
Market Rate
The prevailing price or interest rate for goods, services, or securities in a competitive market.
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