Question

What determines the income flows that households​ receive? A. an agency of the Federal government B. their ownership of factors of​ production, how much they sell in the factor​ markets, and the prices received when sold C. what they choose to consume D. what they choose to​ produce, how much is​ sold, and the price received when sold E. financial institutions such as banks

Answer 1

Answer:

B. their ownership of factors of​ production, how much they sell in the factor​ markets, and the prices received when sold

Explanation:

Ownership of factor of productions such as land, capital, labour and entrepreneurship services hired to a firm determines the income level of a family. A household can generate income from a land they hire out or produce on, they can also generate income from capital used in an investment. They can sell factors of production such as labour and technical know-how in the factor market and get paid for it. These are the major determinants of income flow in a household.