In the circular-flow diagram, in the markets for
A)goods and services, households and firms are both buyers.
B)the factors of production, households are sellers and firms are buyers.
C)goods and services, households are sellers and firms are buyers.
D)the factors of production, households and firms are both buyers.

Question

Quizplus · Accepted Answer

In the circular-flow diagram, households sell factors of production (such as labor, land, and capital) to firms, making them the sellers in the markets for the factors of production, while firms are the buyers as they purchase these inputs to produce goods and services.

In the Circular-Flow Diagram, in the Markets for