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

question 2

True/False

In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers.

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Definitions:

Unaddressed Envelope

An envelope lacking a specific destination address, often used for general mail distribution or marketing purposes.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Foreclose

The legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Consideration

The value (such as money, goods, or services) that is exchanged between parties in a contract.