Figure 2.15 Alt text for Figure 2.15: In figure 2.15, a circular flow diagram.
Long description for Figure 2.15: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Economic Agents M, Market K, and Economic Agents J.The fourth circle is empty unmarked.The diagram shows the flow of wages and salaries from Market K to Economic Agents M.The flow of labor services goes from Market K to Economic Agents J.
-Refer to Figure 2.15.One segment of the circular flow diagram in the figure shows the flow of labour services from market K to economic agents J.What is market K and who are economic agents J?
A)K = factor markets; J = households
B)K = product markets; J = households
C)K = factor markets; J = firms
D)K = product markets; J = firms

Question

Figure 2.15  Alt text for Figure 2.15: In figure 2.15, a circular flow diagram.
Long description for Figure 2.15: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Economic Agents M, Market K, and Economic Agents J.The fourth circle is empty unmarked.The diagram shows the flow of wages and salaries from Market K to Economic Agents M.The flow of labor services goes from Market K to Economic Agents J.
-Refer to Figure 2.15.One segment of the circular flow diagram in the figure shows the flow of labour services from market K to economic agents J.What is market K and who are economic agents J?
A)K = factor markets; J = households 
B)K = product markets; J = households 
C)K = factor markets; J = firms 
D)K = product markets; J = firms

Quizplus · Accepted Answer

Market K represents factor markets, where labor services are bought and sold. Economic Agents J represents firms, which demand labor services to produce goods and services. Therefore, option C is the correct choice.

Figure 215 Alt Text for Figure 2