According to the simple circular-flow model, what do firms buy from households?
A) natural resources, such as oil and minerals
B) goods and services
C) inventions and innovations
D) labour

Question

Quizplus · Accepted Answer

In the simple circular-flow model, firms buy labor (a factor of production) from households. Households provide labor to firms, and in return, they receive wages or salaries.

According to the Simple Circular-Flow Model, What Do Firms Buy