Question

In what form do households receive income from labor within a resource market?(1 point)
Responses

interest
interest

rent
rent

wages
wages

profit
profit
Question 3
In the circular flow diagram with government, what does the government receive from factor markets?(1 point)
Responses

goods and services
goods and services

taxes
taxes

expenditures
expenditures

land, labor, and capital
land, labor, and capital
Question 4
As the price of a good or service increases, consumers will purchase a lower quantity of that good or service due, in part, to the fact that consumers cannot afford the same quantity of a good or service at a higher price. This concept is known as the _____.(1 point)
Responses

ceteris paribus effect
ceteris paribus effect

substitution effect
substitution effect

income effect
income effect

inflation

Answer 1

Here are the answers to your questions:

**Question 2:** In what form do households receive income from labor within a resource market?
**Answer:** wages

**Question 3:** In the circular flow diagram with government, what does the government receive from factor markets?
**Answer:** taxes

**Question 4:** As the price of a good or service increases, consumers will purchase a lower quantity of that good or service due, in part, to the fact that consumers cannot afford the same quantity of a good or service at a higher price. This concept is known as the _____.
**Answer:** income effect