In a Simple Circular-Flow Diagram, Firms Own the Factors of Production

question 178

True/False

In a simple circular-flow diagram, firms own the factors of production and use them to produce goods and services.

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Definitions:

Statute of Frauds

A legal principle requiring certain contracts to be written and signed to be enforceable.

Executor

A person named in a will or appointed by a court to administer the estate of a deceased person.

Liquidated

The process of converting assets into cash, often referring to the disbanding of a company and selling off its assets.

Reimbursed

The process of compensating someone for an expense they have incurred.