-Refer to the circular flow model of the economy.In the diagram flow (1)represents:
A) wage,rent,interest,and profit income.
B) land,labour,capital,and entrepreneurial ability.
C) goods and services.
D) consumer expenditures.

Question

-Refer to the circular flow model of the economy.In the diagram flow (1)represents:
A) wage,rent,interest,and profit income. 
B) land,labour,capital,and entrepreneurial ability. 
C) goods and services. 
D) consumer expenditures.

Quizplus · Accepted Answer

Wage, rent, interest, and profit income are all types of factor income, which is paid to households for their contribution to production.

-Refer to the Circular Flow Model of the Economy