In the Markets for Factors of Production in the Circular-Flow

question 153

Multiple Choice

In the markets for factors of production in the circular-flow diagram,

• A)households provide firms with labor,land,and capital.
• B)households provide firms with savings for investment.
• C)firms provide households with goods and services.
• D)firms provide households with revenue.

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Definitions:

Rationalization

In psychoanalytic theory, the defense mechanism that produces a seemingly logical rationale for an impulse or thought that otherwise would cause anxiety.

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Psychosexual Stages

A Freudian theory describing how personality develops through five stages from infancy to adulthood, centered on sexual pleasure from specific body areas.

Phallic Stage

A phase in Freudian psychosexual development, occurring roughly between the ages of three and six, where the libido's focus is on the genital organs.