What do firms supply to households?
What 4 things do households get from firms?
What flows to the government from firms and households?
What are the flows in the market economy that go from firms to households and the flows from households to firms?
What economic activities flow from households to businesses?
What roles are performed by households in the financial system?
What is the role of firms in the circular flow of income?
The main function of the firms is to offer goods. In order to do this, firms take the factors (land, labor, and capital) from households and convert products into goods and services that consumers need and want. The role of firms makes up the second part of the circular flow diagram.