40 in the simple circular-flow diagram, who buys the factors of production?
One of the main basic models taught in economics is the circular-flow model, which describes the flow of money and products throughout the economy in a very simplified way. The model represents all of the actors in an economy as either households or firms (companies), and it divides markets into two categories: Markets for goods and services In a simplified model of an economy, known as a circular flow diagram, households own the factors of production. They sell or lend these factors to firms, which produce goods and services that households buy. Question: In the simple circular-flow diagram, a. households own the factors of production. b. households buy all the goods and services that firms produce. c. labor, and capital flow from households to firms. d. All of the above are correct. This problem has been solved! See the answer Show transcribed image text Expert Answer 100% (4 ratings) In the simple circular-flow diagram, who buys the factors of production?