Figure 2.20 Alt text for Figure 2.20: In figure 2.20, a circular flow diagram.
Long description for Figure 2.20: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Economic Agents A, an unmarked circle, Economic Agents B and Market C.The flow of goods and services goes from Market C to Economic Agents A.The flow of spending on goods and services goes from Market C to Economic Agents B.
-Refer to Figure 2.20.In the circular flow diagram, who are Economic Agents A and who are Economic Agents B?
A)A = firms; B = households
B)A = households; B = firms
C)A = households; B = factor markets
D)A= firms; B = product markets

Question

Figure 2.20  Alt text for Figure 2.20: In figure 2.20, a circular flow diagram.
Long description for Figure 2.20: 4 circles arranged in a circle, labelled as follows, clockwise from the top center: Economic Agents A, an unmarked circle, Economic Agents B and Market C.The flow of goods and services goes from Market C to Economic Agents A.The flow of spending on goods and services goes from Market C to Economic Agents B.
-Refer to Figure 2.20.In the circular flow diagram, who are Economic Agents A and who are Economic Agents B?
A)A = firms; B = households 
B)A = households; B = firms 
C)A = households; B = factor markets 
D)A= firms; B = product markets

Quizplus · Accepted Answer

Economic Agents A represent households and Economic Agents B represent firms in the circular flow diagram. This is because households are the primary consumers of goods and services, while firms are the primary producers.

Figure 220 Alt Text for Figure 2