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Circular Flow Diagram
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Circular Flow Diagram
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0. Basic Principles of Economics / Circular Flow Diagram / Problem 5
Problem 5
Why is it significant that households own the factors of production in the circular flow diagram?
A
It prevents firms from accessing necessary resources.
B
It ensures that households can dictate market prices.
C
It allows households to control the production of goods and services.
D
It enables households to receive income from selling resources.
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