In the Markets for Factors of Production in the Circular-Flow

question 141

Multiple Choice

In the markets for factors of production in the circular-flow diagram,

• A) households provide firms with labor, land, and capital.
• B) households provide firms with savings for investment.
• C) firms provide households with goods and services.
• D) firms provide households with profit.

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Definitions:

Tangible

Refers to physical items or properties that can be seen, touched, and measured.

Measurable

Able to be measured or represented using numbers.

Assess

To assess or determine the characteristics, capacity, or value of something.

Intangible Activities

Activities or services that offer value but do not result in the ownership of physical goods.