In the Circular Flow Diagram, ________ Demand Labor and ________

question 128

Multiple Choice

In the circular flow diagram, ________ demand labor and ________ demand goods and services.

• A) firms; firms
• B) households; firms
• C) firms; households
• D) households; households

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Definitions:

Donative Gift

A gift given without expectation of receiving something in return, intended as an act of generosity or charity.

True Value

The actual, inherent worth of an asset, not influenced by market conditions or sentimental perceptions.

Legal Acceptance

The formal agreement to the terms of a contract, making the contract legally binding and enforceable.

Ownership

The legal right to possess, use, and dispose of something, whether it be physical property, intellectual property, or another asset.