Question

An important conclusion to draw from the​ circular-flow diagram is that __________________.

In the​ circular-flow diagram, who supplies factors of production in exchange for​ income?

Answer 1

An important conclusion to draw from the circular-flow diagram is that households supply factors of production in exchange for income.

Step-by-step explanation:

An important conclusion to draw from the circular-flow diagram is that households supply factors of production in exchange for income. In the diagram, firms produce goods and services, which they sell to households in return for revenues. Households, as workers, sell their labor to firms in exchange for wages, salaries, and benefits.