In the circular-flow diagram,
A)firms are buyers in the markets for goods and services.
B)households are sellers in the markets for the factors of production.
C)firms are sellers in the markets for factors of production and in the markets for goods and services.
D)dollars that are spent on goods and services flow directly from firms to households.

Question

Quizplus · Accepted Answer

In the circular-flow diagram, households are sellers in the markets for the factors of production (such as labor, land, and capital), and firms are buyers in these markets.

In the Circular-Flow Diagram