In the circular-flow diagram,the factor market is where:
A)households buy factors of production.
B)households buy goods and services.
C)businesses buy goods and services.
D)businesses buy factors of production.

Question

Quizplus · Accepted Answer

The factor market is where businesses buy factors of production such as labor, capital, and natural resources from households. This is shown in the circular flow diagram as an arrow pointing from households to the factor market, and then from the factor market to businesses.

In the Circular-Flow Diagram,the Factor Market Is Where