The following question are based on the following circular flow diagram:

-In the circular flow model,income to the household is,from the point of view of the firm that pays this income,the same things as

Question

The following question are based on the following circular flow diagram:
 
-In the circular flow model,income to the household is,from the point of view of the firm that pays this income,the same things as

Quizplus · Accepted Answer

In the circular flow model, the income paid to households by firms for labor, land, capital, and entrepreneurship is considered an expense for the firm, thus it is categorized as production costs.

The Following Question Are Based on the Following Circular Flow