Final answer:
In the circular-flow diagram, Susan's salary from BAe Systems is part of the market for factors of production, while BAe Systems selling a military aircraft would be part of the market for goods and services. The factors of production are indeed owned by households.
Step-by-step explanation:
Within the circular-flow diagram, different economic transactions occur. When Susan works for BAe Systems and receives a salary payment, it reflects the flow of labor and income between households and firms. This transaction occurs in the market for factors of production, where households (such as Susan providing labor) sell their labor, capital, and natural resources to businesses in return for income.
Firms, like BAe Systems, sell goods and services in the product market, where households are the purchasers. Thus, if BAe Systems sells a military aircraft, the transaction takes place in the market for goods and services, not in the market for factors of production. Additionally, the factors of production, which include labor, capital, and natural resources, are owned by households. Firms rent these factors to produce goods and services.
Therefore, the correct statement regarding the circular-flow diagram is that the factors of production are owned by households.