According to a simple circular-flow diagram, how many markets do households and firms interact in?
A) one type of market
B) two types of markets
C) three types of markets
D) four types of markets

Question

Quizplus · Accepted Answer

Households and firms interact in two types of markets - product markets where households buy goods and services from firms, and factor markets where firms buy resources from households.

According to a Simple Circular-Flow Diagram, How Many Markets Do