In the Circular Flow Diagram, Who Owns the Factors of Production

question 247

Short Answer

In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

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Definitions:

Olive Oil

A liquid fat obtained from olives, used in cooking, cosmetics, pharmaceuticals, and soaps, and as a fuel for traditional oil lamps.

Imported

Refers to goods or services brought into one country from another.

Trading Bloc

Consists of those countries that have signed a particular trade agreement.

Trade Activities

Various operations and transactions involved in the buying, selling, or exchange of goods and services between businesses, countries, or entities.