Asked by
David Nguyen
on Oct 26, 2024Verified
In the circular-flow diagram,firms buy _____ in the _____ market.
A) goods and services;product
B) goods and services;factor
C) resources;product
D) resources;factor
Factor Market
A marketplace where factors of production (e.g., labor, capital, land) are bought and sold.
Circular-Flow Diagram
A visual model of the economy that shows the flow of money, goods and services, and factors of production between households and businesses.
Firms
Businesses or companies that produce goods or provide services with the aim of making a profit.
- Outline the differences between factor markets and product markets as components of the economic circular flow.
Verified Answer
AR
Learning Objectives
- Outline the differences between factor markets and product markets as components of the economic circular flow.
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