Figure 2-12

-Refer to Figure 2-12.One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A.What is market C and who are economic agents A?
A)C = factor markets; A = households
B)C = product markets; A = households
C)C = factor markets; A = firms
D)C= product markets; A = firms

Question

Figure 2-12
 
-Refer to Figure 2-12.One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A.What is market C and who are economic agents A?
A)C = factor markets; A = households 
B)C = product markets; A = households 
C)C = factor markets; A = firms 
D)C= product markets; A = firms

Quizplus · Accepted Answer

Market C represents the product markets, where goods and services are exchanged. Economic agents A refers to households, who purchase these goods and services in the product markets. Therefore, the correct choice is B.

Figure 2-12 -Refer to Figure 2-12.One Segment of the Circular Flow Diagram