In the circular-flow diagram,which of the following items flows from households to firms through the markets for the factors of production?
A)goods and services
B)land,labor,and capital
C)dollars spent on goods and services
D)wages,rent,and profit

Question

Quizplus · Accepted Answer

The markets for factors of production involve the exchange of land, labor, and capital (the factors of production) from households to firms in exchange for income in the form of wages, rent, and profits. Goods and services flow from firms to households through the markets for goods and services, while dollars flow in the opposite direction as households purchase goods and services from firms.

In the Circular-Flow Diagram,which of the Following Items Flows from Households