Which statement about the circular-flow diagram is correct?

1. A Option A: If BAE Systems sells a military aircraft, the transaction takes place in the market for factors of production
2. B Option B: If Susan works for BAE Systems and receives a salary payment, the transaction takes place in the market for goods and services
3. C Option C: The factors of production are owned by households
4. D Option D: None of these

Answer checked 11 October 2026 · How we write and check questions