Figure 2-13

-Refer to Figure 2-13.One segment of the circular flow diagram in the figure shows the flow of funds from economic agents E to market F.Who are economic agents E and what is market F?
A)E = households; F = product markets
B)E = firms; F = product markets
C)E = households; F = factor markets
D)none of the above

Question

Figure 2-13
 
-Refer to Figure 2-13.One segment of the circular flow diagram in the figure shows the flow of funds from economic agents E to market F.Who are economic agents E and what is market F?
A)E = households; F = product markets 
B)E = firms; F = product markets 
C)E = households; F = factor markets 
D)none of the above

Quizplus · Accepted Answer

Economic agents E are households who provide money to the market F, which is the product market. This represents the purchase of goods and services by households in the economy.

Figure 2-13 -Refer to Figure 2-13.One Segment of the Circular Flow Diagram