In the circular-flow diagram,a household is a(n):
A)entity that sells goods and services.
B)individual or group of people who share their income.
C)entity that purchases factors of production.
D)member of a group that is prohibited from buying imported goods and services.

Question

Quizplus · Accepted Answer

In the circular-flow diagram, a household is defined as an individual or group of people who share their income and consume goods and services. They also provide factors of production to firms.

In the Circular-Flow Diagram,a Household Is A(n)