Market Economy Relationships
Which of the following statements accurately describes relationships within a market economy?
A
The government buys goods and services from households in exchange for taxes.
B
Businesses pay wages, interest, and profits to households in exchange for the use of their factors of production.
C
Households pay wages, rent, interest, and profits to businesses in exchange for their factors of production.
D
Governments pay wages, rent, interest, and profits to firms that purchase physical capital from households.
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