Figure 2-2
-Refer to Figure 2-2.If households are sellers in the markets represented by Box D of this circular-flow diagram,then
A)Box D must represent the markets for factors of production.
B)Box C must represent the markets for goods and services.
C)firms are buyers in the markets represented by Box D.
D)All of the above are correct.

Question

Figure 2-2 
-Refer to Figure 2-2.If households are sellers in the markets represented by Box D of this circular-flow diagram,then
A)Box D must represent the markets for factors of production. 
B)Box C must represent the markets for goods and services. 
C)firms are buyers in the markets represented by Box D. 
D)All of the above are correct.

Quizplus · Accepted Answer

Households sell factors of production (like labor) in Box D, which represents the markets for factors of production. Firms buy these factors, making all statements correct.

Figure 2-2 -Refer to Figure 2-2.If Households Are Sellers in the Markets