-Refer to the figure.If box A represents businesses and flow (7)represents goods and services,then:
A) box D is the product market and box B is the factor market.
B) box D is the product market and box B is households.
C) box B is the product market and box C is households.
D) box C is the product market and box B is the factor market.

Question

-Refer to the figure.If box A represents businesses and flow (7)represents goods and services,then:
A) box D is the product market and box B is the factor market. 
B) box D is the product market and box B is households. 
C) box B is the product market and box C is households. 
D) box C is the product market and box B is the factor market.

Quizplus · Accepted Answer

Box A represents businesses, which produce goods and services (flow 7). Box D represents the product market, where goods and services are sold to consumers. Box B represents the factor market, where businesses purchase inputs such as labor and capital.

-Refer to the Figure