In the circular flow model, which group can obtain income by selling their resources?

In the circular flow model, households are the entities that supply factors of production, such as labor, land, and capital, to firms. In exchange for these resources, households receive income in the form of wages, rent, interest, and profits. This income allows them to purchase goods and services produced by firms.

The circular flow model illustrates how money moves through an economy, highlighting the interdependence of different economic agents. Households play a crucial role in this model as providers of resources and consumers of products. This flow of resources and income creates a cycle that sustains economic activity.

While firms also participate in the economy by producing goods and services, it is specifically households that obtain income by selling their resources. This distinction is essential for understanding the dynamics of income distribution and resource allocation within the economy. Other groups like states and government agencies primarily function to regulate and support economic activity rather than engage in the selling of resources in the same manner that households do.