In the markets for factors of production in the circular-flow diagram,

Question

Quizplus · Accepted Answer

In the markets for factors of production, households provide firms with the necessary resources such as labor, land, and capital. Therefore, choice A is the correct answer. B and D are incorrect as they do not relate to the markets for factors of production. C is incorrect as it refers to the markets for goods and services where firms provide households with products, not the other way around.

In the Markets for Factors of Production in the Circular-Flow