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In the Circular-Flow Diagram, Factors of Production Are the Goods

question 122

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In the circular-flow diagram, factors of production are the goods and services produced by firms.


Definitions:

Retailers

Businesses or individuals that sell goods or services directly to consumers, typically from a physical location, online, or both.

Purchase Money

Funds used specifically for buying an asset, often in the context of money borrowed to purchase real estate.

Security Interest

A legal right granted by a debtor to a creditor over the debtor's property to secure the repayment of a debt.

Consumer Goods

Products that are purchased for personal or household use, rather than for manufacturing or reselling.

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