In the Simple Circular-Flow Diagram,households

question 35

Multiple Choice

In the simple circular-flow diagram,households

• A)are the only decision makers.
• B)own the factors of production.
• C)are buyers of inputs.
• D)consume only some of the goods and services that firms produce.

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Definitions:

Independent Trials

Refers to experiments or processes in which the outcome of any given trial does not affect the outcomes of future or past trials.

Probability of Success

The likelihood of achieving a desired outcome or event.

Binomial Distribution

A probability distribution that represents the number of successes in a set number of independent binary (success/failure) experiments.

Consecutive Trials

Successive attempts or tests carried out to achieve a particular result, where each trial follows the previous one without interruption.