In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

Question

Quizplus · Accepted Answer

In the circular-flow diagram, households provide factors of production (labor, land, and capital) to firms, and in return, they receive payments for these factors through the markets for the factors of production.

In the Circular-Flow Diagram, Payments for Labor, Land, and Capital