In the expanded circular flow diagram, the rest of the world interacts directly with:

A. households.
B. firms.
C. product markets.
D. factor markets.

Answer: C

Economics

You might also like to view...

Jobs in rural areas generally pay lower wages than jobs in urban areas because there are limits to labor mobility

a. True b. False

Economics

Some employers choose to discriminate as a means of ____ information costs by hiring workers from a similar background as those that were ____ productive in the past

a. increasing; more b. reducing; more c. increasing; less d. reducing; less

Economics