2. The circular flow of economic activity between consumers and producers includes which of the following? (A) Households buy factors of production from firms and firms sell factors of production to households. (B) Households buy goods and services from firms and sell factors of production to businesses. (C) Firms sell factors of production to households and buy factors of production from the government. (D) The government buys factors of production from firms and firms pay taxes to households. (E) Firms buy factors of production from both households and the government.