In the simple circular-flow diagram,the participants in the economy are

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The simple circular-flow diagram only includes households and firms. Households provide factors of production (land, labor, capital, and entrepreneurship) to firms in exchange for income, while firms provide goods and services to households in exchange for payment. This exchange forms the basis of the economy. The government and elected officials may play a role in the economy, but they are not direct participants in the simple circular-flow diagram.

In the Simple Circular-Flow Diagram,the Participants in the Economy Are