Answer: Purchase of outputs produced by the firm and in exchange receives wages for their labour from the firms.
Explanation:The circular flow of income is the flow of money, goods & services between economic agents. These economic agents are: the household, Firms and Government.
The Household spend its income on goods & services and also purchase outputs produced by firms and gets its inflow by providing factors of production to the firms.
The Firms spends its income on all factors of production( Labour, Capital, Raw materials) and gets its inflow from the sale of goods & services.
Government consist of the local state and federal whose income flows from the household and firm by way of taxes and flows out by way of grants, subsidies and purchase of goods & services.