Which statement is TRUE within the circular flow of economic activity?
A) Households are sellers of products and sellers of production factors.
B) Business firms are buyers and sellers of production factors.
C) Households are sellers of products and buyers of production factors.
D) Business firms are sellers of products and buyers of production factors.

Question

Quizplus · Accepted Answer

In the circular flow of economic activity, business firms sell products and services to households and the government, and buy factors of production (such as labor, land, and capital) from households. This reflects the role of businesses in producing goods and services and their need to acquire resources to facilitate production.

Which Statement Is TRUE Within the Circular Flow of Economic