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With wages, rent and dividends.
Alex dabek
a. the goods and services that households produce are purchased by firms.b. firms purchase factors of production from householdsc. Households purchase factors of production from firmsd. firms loan money to households to purchase capital
Allow Financial sector to hold savings. Pay tax (direct & indirect) to the Government. Spend on consumption, which goes to Producers. Provide factors of production / resources to Producers.
communism households
With wages, rent and dividends.
Alex dabek
The three factors of production are capital, labor, and land. Two types of payments are from firms and households. These payments go to the goods and services markets.
a. the goods and services that households produce are purchased by firms.b. firms purchase factors of production from householdsc. Households purchase factors of production from firmsd. firms loan money to households to purchase capital
Allow Financial sector to hold savings. Pay tax (direct & indirect) to the Government. Spend on consumption, which goes to Producers. Provide factors of production / resources to Producers.
communism households
In a free market economy, firms purchase factors of production such as labor, from households.
True
truetrue
To provide all the factors of production to resource markets.
The circular flow model is a summary of the operation of a market economy, that is the flow between production factors (firms) and households. Firms provide an income to households though employment (labour) and in the same manor households spend their income on firms for services and products.
The flows of 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.