Asked by
Katie Dickens
on Oct 26, 2024
Verified
In the circular-flow diagram,the factor market is where:
A) households buy factors of production.
B) households buy goods and services.
C) businesses buy goods and services.
D) businesses buy factors of production.
Factor Market
A marketplace where factors of production (e.g., labor, capital) are bought and sold.
Circular-Flow Diagram
A graphical outline that tracks the flow of monetary resources through markets, between companies and household sectors.
Households
Economic units consisting of all individuals who live together and make joint decisions regarding consumption and other financial matters.
- Identify the distinctions between factor markets and product markets in the economy's circular flow.
Verified Answer
US
Learning Objectives
- Identify the distinctions between factor markets and product markets in the economy's circular flow.