Which of the following is an example of the circular flow of income that shows the interdependence of households and firms? Group of answer choices Firms in the factor markets pay households in the form of wages, interest, rent and profit for the resources that households supplied. Households supply their resources to the firms in the product markets and, in turn, demand in the factors market the goods and services produced by firms. Households demand their resources from firms in the factors’ market and, in turn, supply in the product market the goods and services produced by firms. Firms supply resources that households demand in the factors’ market and, in turn, provide households with the goods and services produced for the product market.
Which of the following is an example of the circular flow of income that shows the interdependence of households and firms? Group of answer choices Firms in the factor markets pay households in the form of wages, interest, rent and profit for the resources that households supplied. Households supply their resources to the firms in the product markets and, in turn, demand in the factors market the goods and services produced by firms. Households demand their resources from firms in the factors’ market and, in turn, supply in the product market the goods and services produced by firms. Firms supply resources that households demand in the factors’ market and, in turn, provide households with the goods and services produced for the product market.
Chapter1: Introducing The Economic Way Of Thinking
Section: Chapter Questions
Problem 2SQ
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Question
Which of the following is an example of the circular flow of income that shows the interdependence of households and firms?
Group of answer choices
Firms in the factor markets pay households in the form of wages, interest, rent and profit for the resources that households supplied.
Households supply their resources to the firms in the product markets and, in turn, demand in the factors market the goods and services produced by firms.
Households demand their resources from firms in the factors’ market and, in turn, supply in the product market the goods and services produced by firms.
Firms supply resources that households demand in the factors’ market and, in turn, provide households with the goods and services produced for the product market.
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