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Two basic types of markets exist in any market economy: resource markets and product markets. The exchanges that take place in these markets benefit both the households and the firms that engage in exchanges. This lesson will introduce the circular flow of money, resources and goods and services in a market economy.
Answer:
Federalist No. 51 addresses means by which appropriate checks and balances can be created in government and also advocates a separation of powers within the national government. The idea of checks and balances is a crucial part of the modern U.S. system of government.
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