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Based on this model, households earn income when purchasing in the factor markets. What factor is crucial for household income?

A. Goods and services
B. Labor and resources
C. Capital and entrepreneurship
D. Taxes and subsidies

User Leor
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1 Answer

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Final answer:

Household income is mainly derived from the factor of labor and resources (B) in a market economy like the United States.

Step-by-step explanation:

In a market economy like the United States, household income is mainly derived from the factor of labor and resources (B). This refers to the work and other resources (such as land, capital, and raw materials) that households provide to firms in the market for inputs (or factors of production) in exchange for payment. The most common form of income for households is wages, salaries, commissions, and tips received in return for their labor.

User Pookpash
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