Figure 2-8

-Refer to Figure 2-8.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?

Question

Figure 2-8
 
-Refer to Figure 2-8.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?

Quizplus · Accepted Answer

Market K represents the factor markets where factors of production, such as labor, are bought and sold. Economic agents M represent households who supply labor in return for wages and salaries. Therefore, option A is the correct answer.

Figure 2-8 -Refer to Figure 2-8.One Segment of the Circular Flow Diagram