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Name a way that your family interacts in the factor market and a way that it interacts

Chapter 2, Problem Questions for Review 2.4

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QUESTION:

Name a way that your family interacts in the factor market and a way that it interacts in the product market.

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QUESTION:

Name a way that your family interacts in the factor market and a way that it interacts in the product market.

ANSWER:

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The circular flow diagram of the two entity economic model shows the interaction and functions between households and firms. There are two-way transactions for both households and firms. This model explains the basics of microeconomic structure modeling the market for products and factors.

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