Figure 2-11
-Refer to Figure 2-11.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 2-11 
-Refer to Figure 2-11.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

In the circular flow diagram, economic agents A represent households, which provide factors of production to firms and receive goods and services in return. Economic agents B represent firms, which produce goods and services for households in exchange for factors of production.

Figure 2-11 -Refer to Figure 2-11.In the Circular Flow Diagram,who Are Economic