In the circular-flow model, households supply all of the following except:
A) labor.
B) goods and services.
C) capital.
D) entrepreneurial ability.
E) natural resources.

Question

Quizplus · Accepted Answer

In the circular-flow model, households supply factors of production such as labor, capital, entrepreneurial ability, and natural resources to firms. They do not supply goods and services; instead, they consume goods and services produced by firms.

In the Circular-Flow Model, Households Supply All of the Following