In the circular-flow diagram,the places where resources,especially capital and labour,are bought and sold are the:
A) product markets.
B) factor markets.
C) households.
D) firms.

Question

Quizplus · Accepted Answer

Factor markets are where land, labor, and capital are bought and sold. Product markets are where goods and services are offered for sale by firms to households. Households are the consumers of goods and services, while firms are the producers.

In the Circular-Flow Diagram,the Places Where Resources,especially Capital and Labour,are