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In the Circular-Flow Diagram, the Two Types of Markets in Which

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In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.


Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, politics or being influenced by peer pressure.

Milgram's Studies

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Obedience

The act of following orders or instructions, often from an authority figure, without questioning.

Ethical Controls

Measures or guidelines put in place to ensure behavior and practices conform to ethical standards and principles.

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