Figure 2-17
-Refer to Figure 2-17. 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 2-17 
-Refer to Figure 2-17. 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, households (A) provide factors of production to firms (B) and receive goods and services in return.

Figure 2-17 -Refer to Figure 2-17. in the Circular Flow Diagram, Who