Figure 2-16
-Refer to Figure 2-16. One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A. What is market C and who are economic agents A?
A) C = factor markets; A = households
B) C = product markets; A = households
C) C = factor markets; A = firms
D) C= product markets; A = firms

Question

Figure 2-16 
-Refer to Figure 2-16. One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A. What is market C and who are economic agents A?
A) C = factor markets; A = households 
B) C = product markets; A = households 
C) C = factor markets; A = firms 
D) C= product markets; A = firms

Quizplus · Accepted Answer

In the circular flow diagram, product markets are where goods and services are sold, and households are the economic agents that purchase these goods and services.

Figure 2-16 -Refer to Figure 2-16. One Segment of the Circular Flow