• 2022-05-28
    In the simple circular-flow diagram, the participants in the economy are
    A: firms and government.
    B: households and firms.
    C: households and government.
    D: households, firms, and government.
  • B

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    • 0

      In a market economy A: households decide which firms to work for and what to buy with their incomes B: firms decide whom to hire and what to make. C: a central planner makes decisions about production and consumption. D: Both a and b are correct.

    • 1

      ______is a kind of "inner government” within the British Government.

    • 2

      Like the American government, Canada has a federal government.

    • 3

      18. Invisible hand is a term used by the economist ______ to describe how the decisions of households and firms lead to desirable market outcomes.

    • 4

      In the circular-flow diagram, which of the following items represents a payment of a factor of production? A: Interest B: Spending by households on service C: Spending by households on goods D: capital