In the circular-flow diagram,in the markets for
A)goods and services,households and firms are both sellers.
B)goods and services,households are buyers and firms are sellers.
C)the factors of production,households are buyers and firms are sellers.
D)the factors of production,households and firms are both buyers.

Question

Quizplus · Accepted Answer

In the markets for goods and services, households are buyers as they purchase the goods and services produced by the firms. Firms, on the other hand, are sellers as they produce and offer goods and services for sale. This is the basic model of how the circular flow of income and goods occurs in an economy.

In the Circular-Flow Diagram,in the Markets for