Question

In the circular flow diagram, what do households receive from factor markets?(1 point)
Responses

income
income

factors of production
factors of production

revenue
revenue

goods and services

Answer 1

In the circular flow diagram, households receive **income** from factor markets. This income is typically in the form of wages, rents, interest, and profits in exchange for providing factors of production (like labor, land, and capital) to firms.