What is the function of households in the circular-flow model?
A) They own and sell resources.
B) They play a very minor role in the economy.
C) They supply goods and services.
D) They are the largest purchasers of resources.

Question

What is the function of households in the circular-flow model?  
A) They own and sell resources. 
B) They play a very minor role in the economy. 
C) They supply goods and services. 
D) They are the largest purchasers of resources.

Quizplus · Accepted Answer

Households own and sell resources such as labor, land, and capital to firms in exchange for income in the circular-flow model.

What Is the Function of Households in the Circular-Flow Model