Figure 2-2
-Refer to Figure 2-2.Boxes A and B of this circular-flow diagram represent
A)firms and households.
B)households and government.
C)the markets for goods and services and the markets for financial assets.
D)the markets for goods and the markets for services.

Question

Figure 2-2 
-Refer to Figure 2-2.Boxes A and B of this circular-flow diagram represent
A)firms and households. 
B)households and government. 
C)the markets for goods and services and the markets for financial assets. 
D)the markets for goods and the markets for services.

Quizplus · Accepted Answer

Boxes A and B represent firms and households, respectively. The arrows indicate the flow of resources and income between these two sectors. Therefore, the correct answer is A) firms and households.

Figure 2-2 -Refer to Figure 2-2.Boxes a and B of This Circular-Flow