Figure 2-11

-Refer to Figure 2-11.One segment of the circular flow diagram in the figure shows the flow of wages and salaries from market K to economic agents M.What is market K and who are economic agents M?
A)K = factor markets; M = households
B)K = product markets; M = households
C)K = factor markets; M = firms
D)K = product markets; M = firms

Question

Figure 2-11
 
-Refer to Figure 2-11.One segment of the circular flow diagram in the figure shows the flow of wages and salaries from market K to economic agents M.What is market K and who are economic agents M?
A)K = factor markets; M = households 
B)K = product markets; M = households 
C)K = factor markets; M = firms 
D)K = product markets; M = firms

Quizplus · Accepted Answer

Market K is the factor market, where wages and salaries are exchanged for labor. Economic agents M are households, who provide labor in exchange for wages and salaries.

Figure 2-11 -Refer to Figure 2-11.One Segment of the Circular Flow Diagram