-Refer to the above figure. The top two arrows of the figure refer to the product markets. The bottom arrows refer to the factor markets. Which arrow represents factor services?
A) Arrow A
B) Arrow B
C) Arrow C
D) Arrow D

Question

-Refer to the above figure. The top two arrows of the figure refer to the product markets. The bottom arrows refer to the factor markets. Which arrow represents factor services?
A) Arrow A 
B) Arrow B 
C) Arrow C 
D) Arrow D

Quizplus · Accepted Answer

Arrow C represents factor services, as it indicates the flow of labor, land, and capital services from households to firms, which is characteristic of factor markets.

-Refer to the Above Figure