Answered: In the simple circular-flow diagram,…

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

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 2CQQ

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Question

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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