In the circular flow model, households derive income from all of the following categories except
A) wages earned by labor
B) revenue earned by firms
C) profit earned by entrepreneurs
D) rent earned by people providing land resources
E) interest earned by people providing capital resources

Question

Quizplus · Accepted Answer

In the circular flow model, households derive income from wages (labor), profit (entrepreneurs), rent (land resources), and interest (capital resources). Revenue earned by firms is not a direct source of income for households; instead, it is what firms receive from selling goods and services.

In the Circular Flow Model, Households Derive Income from All