Examine the circular flow diagram below:a. Referring to the diagram above, Explain A, B, C, and D.b. Show in which market firms give payments to households as an exchange for theuse of their productive resources. Explain your answer briefly.c. Show in which market households give payments to firms as an exchange for thepurchase of goods and services produced by firms.

A Markets for B Goods and B Services Firms Households C Markets for C D Factors of D Production