Figure 2-10
-Refer to Figure 2-10.In the circular flow diagram,economic agents M represent
A)households.
B)product markets.
C)firms.
D)factor markets.

Question

Figure 2-10 
-Refer to Figure 2-10.In the circular flow diagram,economic agents M represent
A)households. 
B)product markets. 
C)firms. 
D)factor markets.

Quizplus · Accepted Answer

In the circular flow diagram, economic agents M represent households. This is because households are the primary consumers and owners of factors of production (land, labor, capital, and entrepreneurship) that are supplied to firms in exchange for income.

Figure 2-10 -Refer to Figure 2-10.In the Circular Flow Diagram,economic Agents M