In the circular-flow diagram, a household is:
A)an entity that sells goods and services.
B)an individual or group of people who share their income.
C)an entity that purchases factors of production.
D)a member of a group that is prohibited from buying imported goods and services.

Question

Quizplus · Accepted Answer

In the circular-flow diagram, a household is defined as an individual or group of people who share their income and consume goods and services. They also provide factors of production, such as labor, to firms.

In the Circular-Flow Diagram, a Household Is