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 sellers and firms are buyers.
C)the factors of production,households are sellers and firms are buyers.
D)the factors of production,households and firms are both buyers.

Question

Quizplus · Accepted Answer

In the circular-flow diagram, households sell factors of production (like labor, land, and capital) to firms, and firms buy these factors to produce goods and services.

In the Circular-Flow Diagram,in the Markets for