Figure 2.17 Alt text for Figure 2.17: In figure 2.17, a circular flow diagram.
Long description for Figure 2.17: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Economic Agents E, an unmarked circle, Market F, and Economic Agents G.The flow of funds goes from Economic Agents E to Market F.Another arrow shows the flow of spending on goods and services from Market F to Economic Agents G.
-Refer to Figure 2.17.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)E = firms; F = factor markets

Question

Figure 2.17  Alt text for Figure 2.17: In figure 2.17, a circular flow diagram.
Long description for Figure 2.17: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Economic Agents E, an unmarked circle, Market F, and Economic Agents G.The flow of funds goes from Economic Agents E to Market F.Another arrow shows the flow of spending on goods and services from Market F to Economic Agents G.
-Refer to Figure 2.17.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)E = firms; F = factor markets

Quizplus · Accepted Answer

Economic agents E represent households, who provide funds in the form of income to the product markets (market F). Market F represents the markets for goods and services, where firms sell their products to households. Therefore, option A is the correct choice.

Figure 217 Alt Text for Figure 2