In the simple-circular flow diagram, the flow of money from the firms to the markets for factors of production is called
A)spending.
B)revenue.
C)income.
D)wages, rent, and profit.

Question

Quizplus · Accepted Answer

In the circular flow diagram, firms pay households for the use of factors of production, which includes wages for labor, rent for land, and profit for entrepreneurship.

In the Simple-Circular Flow Diagram, the Flow of Money from the Firms