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The figure above shows the circular flow model.

In the figure above, which of the following transactions take place in the factor markets?
i. Michael, a student, orders a computer from Dell online.
ii. Peter gets a job at a Wal-Mart store.
iii. Apple Computer opens a new store in Georgia

Question

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The figure above shows the circular  flow model.

In the figure above, which of the following transactions take place in the factor markets?
i. Michael, a student, orders a computer from Dell online.
ii. Peter gets a job at a Wal-Mart store.
iii. Apple Computer opens a new store in Georgia

Quizplus · Accepted Answer

The factor markets are where households sell their factors of production (labor, capital, and land) to businesses. In this case, Peter getting a job at a Wal-Mart store (ii) and Apple Computer opening a new store in Georgia (iii) are both transactions that take place in the factor markets.

- The Figure Above Shows the Circular Flow Model