in the circular flow diagram, _____ supply the factors of production, and _____ goods and services. a. households; sell b. households; buy c. firms; sell d. firms; buy

Respuesta :

The correct answer is The factors of production include land, labor, capital and entrepreneurship.

Rent, labor, and profit are the prices that correspond to these production elements. Household members purchase products and services from companies in an effort to satiate their seemingly limitless needs and desires. The interplay between two sets of economic decision-makers—households and businesses—as well as two different categories of economic markets—the market for resources and the market for products and services—is shown by the circular flow model. The direction of the arrows on the lines labeled "Labor, Capital, Land, etc." in the above image represents how households provide enterprises with labor, capital, and other elements of production.

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