Question

In the circular flow diagram, what do households receive from factor markets?

a) Goods and services
b) Revenue
c) Income
d) Factors of production

Answer 1

In the circular flow diagram, households receive income from factor markets.

Step-by-step explanation:

In the circular flow diagram, households receive income from factor markets.

Factor markets are where households provide labor and other resources to firms in exchange for payments, such as wages. This income allows households to buy goods and services from the product market.

Therefore, the correct answer is c) Income.