Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 2 - Part I - Thinking Like an Economist - Quick Check Multiple Choice: 2

Answer

The circular-flow diagram illustrates that, in markets for the factors of production, a.) households are sellers, and firms are buyers.

Work Step by Step

In markets for the factors of production, households are sellers, and firms are buyers, while in markets for goods and services, households are buyers and firms are sellers. The circular-flow diagram illustrates the flow of goods and services in both types of markets.
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