In the Simple Circular-Flow Diagram,who Buys the Factors of Production

question 10

Multiple Choice

In the simple circular-flow diagram,who buys the factors of production?

• A)households only
• B)firms only
• C)both households and firms
• D)neither households nor firms

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Definitions:

Photoheterotrophs

Organisms that obtain their energy from sunlight but rely on organic substances for their carbon source.

Photoautotrophs

Organisms that carry out photosynthesis to synthesize nutrients from carbon dioxide and water using sunlight as an energy source.

Chemoheterotrophs

Organisms that obtain their energy by consuming organic molecules created by other organisms.

Vector

In biology, an organism that transmits a disease or parasite from one animal or plant to another. In mathematics and physics, it represents a quantity having both magnitude and direction.