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In a circular-flow diagram, what type of market do households participate in as buyers, and what type of market do firms participate in as sellers?
In a circular-flow diagram, what type of market do households participate in as buyers, and what type of market do firms participate in as sellers?
Households participate in the goods and services market as buyers, and firms participate in the goods and services market as sellers.
What is the role of households in the factor market, and what type of resources do they supply to firms?
What is the role of households in the factor market, and what type of resources do they supply to firms?
Households supply labor and capital to firms in the factor market.
What is the primary function of firms in the circular-flow diagram, and how do they compensate households?
What is the primary function of firms in the circular-flow diagram, and how do they compensate households?
The primary function of firms is to produce goods and services, and they compensate households by paying wages and rents for the use of labor and capital.
How do households receive income in the circular-flow diagram, and what do they use this income for?
How do households receive income in the circular-flow diagram, and what do they use this income for?
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What is the ultimate goal of households and firms in the circular-flow diagram, and how is it achieved?
What is the ultimate goal of households and firms in the circular-flow diagram, and how is it achieved?
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