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In the circular flow of income, households receive income from firms in the form of:
  • a)
    Taxes
  • b)
    Interest
  • c)
    Profits
  • d)
    Wages
Correct answer is option 'D'. Can you explain this answer?
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In the circular flow of income, households receive income from firms i...
 In the circular flow of income, households receive income from firms in various forms, including wages (for labor services provided), salaries (for employment in the non-business sector), rent (for the use of property), and profit (for ownership of businesses).
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