In the circular-flow diagram, an organization that produces goods and services for sale is a:
A) government.
B) factor.
C) household.
D) firm.

Question

Quizplus · Accepted Answer

A firm is an economic unit that produces goods and services for sale. It is part of the producer side of the circular-flow diagram, which also includes factors of production (inputs like labor and capital) and markets for goods and services. The other options listed, such as government and household, are not producers in this context.

In the Circular-Flow Diagram, an Organization That Produces Goods and Services