Figure 2-10

-Refer to Figure 2-10.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?

Question

Figure 2-10
 
-Refer to Figure 2-10.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?

Quizplus · Accepted Answer

Economic agents E represent households, who are the suppliers of factors of production (such as labor) and the consumers of goods and services. Market F represents the product markets, where households purchase goods and services from firms. Therefore, the correct choice is A, where E = households and F = product markets.

Figure 2-10 -Refer to Figure 2-10.One Segment of the Circular Flow Diagram