In economics, a circular flow model is a diagram that is used to represent the monetary transactions in an economy.
National income, output, and expenditure are generated by the activities of the two most vital parts of an economy, its households and firms, as they engage in mutually beneficial exchange.
Households
The primary economic function of households is to supply domestic firms with needed factors of production - land, human capital, real capital and enterprise. The factors are supplied by factor owners in return for a reward. Land is supplied by landowners, human capital by labor, real capital by capital owners (capitalists) and enterprise is provided by entrepreneurs.<span> Entrepreneurs combine the other three factors, and bear the risks associated with production.</span>
Oil was discovered on the Arabian peninsula.
<span>The correct answer is a combination of privately-owned businesses and government regulations. In a mixed economy, the government allows for private businesses to supply certain goods. However, the government is involved in supplying critical goods such as in the utility sector. It can also intervene when need arises.</span>
Answer:
Authoritarianism is a form of government in which the people have zero participation; dictatorship. And a Monarchy is ruled by the royal family and they don't always have complete control like dictators.
