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Question
Refer to the given diagram carefully:
The arrows C and D represent ______ Market.
Options
Factor
Goods
Stock
Financial
MCQ
Fill in the Blanks
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Solution
The arrows C and D represent factor Market.
Explanation:
In the given circular flow diagram, arrows C and D represent the flow of factor services (such as land, labour, capital, and entrepreneurship) from households to companies, as well as factor payments (wages, rent, interest, and profit) from firms to households. The factor market facilitates the interchange of productive resources and their rewards, with families selling factor services and firms buying.
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