what role do households play in the circular flow of income?\no households produce goods and services.\no…

Answer:

C. Households consume goods and services.

Brief Explanations:

In the circular - flow of income, households are the main consumers. Firms produce goods and services which households buy using their income. Households supply factors of production (land, labor, capital, entrepreneurship) to firms in return for income (wages, rent, dividends etc.). But it is firms that produce goods and services, pay wages, rent and dividends, and rely on factors of production. Households' key role is consumption.