Question

The flows of the factors of production that go from households through factor markets to firms and of the goods and services that go from firms through goods markets to households are called ________.

Answer 1

The flows of the factors of production that go from households through factor markets to firms and the flows of goods and services that go from firms through goods markets to households are collectively called the "circular flow of income and expenditure." This economic concept illustrates how resources and money flow through the economy between households and firms, representing the fundamental economic transactions in a simplified model.

Step-by-step explanation: