In the Markets for Goods and Services in the Circular-Flow

question 31

Multiple Choice

In the markets for goods and services in the circular-flow diagram,

• A)households and firms are both buyers.
• B)households and firms are both sellers.
• C)households are buyers and firms are sellers.
• D)households are sellers and firms are buyers.

---

Definitions:

Presence Of An Audience

The impact or change in behavior that occurs when actions or communications are conducted in view of others, potentially affecting the dynamics and outcomes.

Constituents

Individuals or groups represented by a negotiator, whose interests are affected by the negotiation outcome.

Revealing Authority

The act of disclosing or making known the power or right to give orders, make decisions, and enforce obedience.

Autonomy

The capacity to make an informed, uncoerced decision independently or govern oneself.