Figure 2-17
-Refer to Figure 2-17. One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A. What is market C and who are economic agents A?
A) C = factor markets; A = households
B) C = product markets; A = households
C) C = factor markets; A = firms
D) C= product markets; A = firms

Question

Figure 2-17 
-Refer to Figure 2-17. One segment of the circular flow diagram in the figure shows the flow of goods and services from market C to economic agents A. What is market C and who are economic agents A?
A) C = factor markets; A = households 
B) C = product markets; A = households 
C) C = factor markets; A = firms 
D) C= product markets; A = firms

Quizplus · Accepted Answer

Market C represents the product market, where goods and services are exchanged between firms and households. Economic agents A represent households, who are the ultimate consumers of goods and services in the economy. Therefore, the correct answer is B, where C = product markets and A = households.

Figure 2-17 -Refer to Figure 2-17. One Segment of the Circular Flow