1. In a short paragraph, explain what the circular flow chart is. Then, explain how the chart works. Be sure to include an example of how households and firms rely
on each other. You can use the picture below to help you. (You do not need to
include the government's role in the flow chart unless you want to)
Goods and services
Consumer expenditure
n
Wages, rent, dividends
Households
Firms
Factors for production

"as long as the reason of man continues fallible, and he is at liberty to exercise it, different opinions will be formed the diversity in the faculties of men, from which the rights of property originate, is not less an insuperable obstacle to a uniformity of interests. the protection of these faculties is the first object of government. from the protection of different and unequal faculties of acquiring property, the possession of different degrees and kinds of property immediately results, and from the influence of these on the sentiments and views of the respective proprietors, ensues a division of the society into different interests and parties." - publius (james madison), federalist no. 10 based on the text, which of the following statements would the author most likely agree with? a: political liberty is best protected by the fragmentation of political power in a large republic. b: political liberty is best protected by a small republic with a unicameral legislature. c: political liberty is least protected in large republic with lots of fractions. d: political liberty is best protected by a particularly democracy.