Question

Name the three factors of production and two payment types in the circular flow model. You may draw a diagram and label the necessary components if you wish.

Answer 1

land, labor and capital are the standard factors of production. Though sometimes entrepreneurship is included and occasionally land is excluded. The payment for goods and services is the price, the hiring of factors is usually called wage or rent depending on whether we are discussing labor or capital.

Answer 2

Thank you! :)

Answer 3

Sure thing!