Question : In the circular flow of income ________ are the owners of factor of production and _______ produces goods and services.
Option 1: Households, firms
Option 2: Firms, households
Option 3: Government, firms
Option 4: Foreign sector, government

Question

Question : In the circular flow of income ________ are the owners of factor of production and _______ produces goods and services.

Option 1: Households, firms

Option 2: Firms, households

Option 3: Government, firms

Option 4: Foreign sector, government

Team Careers360 · Accepted Answer

Correct Answer: Households, firms

Solution :

Households are the owners of factor of production. Firms hire these factor of production and produces goods and services. In return firms make factor payments to the households and households make consumption expenditure.

Hence, Option A is correct.

Exams

Colleges

Predictors

Resources

Quick links

B.Tech CompanionUse Now Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

NEET CompanionUse NowYour one-stop Counselling package for NEET, AIIMS and JIPMER

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Question : In the circular flow of income ________ are the owners of factor of production and _______ produces goods and services.Option 1: Households, firmsOption 2: Firms, households Option 3: Government, firmsOption 4: Foreign sector, government

Related Questions

Question : The flow of factor services from households to firms and corresponding flow of goods and services from firms to household. This mechanism is known as _____________.

Question : In the circular flow of income, households are the ______ of factors of production and ______ of goods and services.

Question : In the circular flow of income, firms are the ______ of goods and services and ______ of factors of production.

Question : Flow of Goods and Services and factors of production across different sectors in a barter economy is known as:

Question : When private sector does not find producing certain goods and services attractive, production of such goods and services is taken by the government. This refers to the ______ objective of Government Budget

Trending Articles/News

Sign In/Sign Up

Download the Careers360 App on your Android phone

B.Tech CompanionUse Now
Your one-stop Counselling package for JEE Main, JEE Advanced and BITSAT

NEET CompanionUse Now
Your one-stop Counselling package for NEET, AIIMS and JIPMER

Question : In the circular flow of income __ are the owners of factor of production and _ produces goods and services.
Option 1: Households, firms
Option 2: Firms, households
Option 3: Government, firms
Option 4: Foreign sector, government

Question : In the circular flow of income, households are the of factors of production and of goods and services.

Question : In the circular flow of income, firms are the of goods and services and of factors of production.