In the Circular Flow Model, Households Supply Resources Such as Labor

question 37

True/False

In the circular flow model, households supply resources such as labor services in the factor market.

---

Definitions:

Capabilities

Refers to the abilities or qualities necessary to achieve a particular task or to perform a specific function.

Cognitive Abilities

Mental capabilities that include thinking, reasoning, problem-solving, and planning.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Behavior

The actions or reactions of an individual, in response to external or internal stimuli, observable by others.