In the circular-flow diagram, which of the following items flows from households to firms? a. goods...

In the circular-flow diagram, which of the following items flows from households to firms?

		a. goods
		b. services
		c. capital
		d. profit

Solutions

Expert Solution

Capital

In the circular flow diagram household are the owners of factors of production and consumer of goods. Firms produce goods and services and sell them to households. Household sector supplies factor services i.e land, labour, capital and enterprise to the firms.

Rahul Sunny answered 1 year ago

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