In the circular flow model, the factors of production:
A) are supplied by households to firms.
B) are used by firms to produce goods and services.
C) include land, labour, machines, and tools.
D) all of the above.

Question

Quizplus · Accepted Answer

The circular flow model illustrates how factors of production (land, labor, capital including machines and tools) are supplied by households to firms, which then use these factors to produce goods and services.

In the Circular Flow Model, the Factors of Production