QUESTION IMAGE
Question
figure 2-10
refer to figure 2-10. in the circular flow diagram, economic agents m represent
○ households.
○ product markets.
○ firms.
○ factor markets.
Brief Explanations
In the circular flow model, households receive wages/salaries from firms in the labor (factor) market, while firms receive labor services from households. Here, Economic Agents M receives wages and salaries from Market K (labor/factor market), which matches the role of households.
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households.