Question

the circular flow of economic activity between consumers and producers includes which of the followingI. households buy factor services from firmsII. households sell factor services to firmsIII. households buy outputs from firmsIV. households sell outputs to firmsa) III onlyb) IV onlyc) I and II onlyd) II and III onlye) III and IV only

Answer 1

Answer:

D

Explanation:

The circular flow of economic activity in the economy constitutes the continuous loop ultimately between producers and consumers whereby consumers supply factors of production to the producer in exchange for wages, and the producer sells output to these consumers who make payment with wages.