Based on the circular flow model, Ford Motor Company participates in the product markets rather than the factor markets. The correct statement would be:
c) They sell cars in the product markets
Explanation:
1. Ford Motor Company is a business entity that produces cars. In the context of the circular flow of economic activity, businesses like Ford engage in selling their products (cars in this case) in the product markets to consumers.
2. The factor markets are where individuals sell their resources, such as labor or land, to businesses in exchange for income. Ford, being a business, does not sell cars in the factor markets but rather buys resources like labor and raw materials from individuals in the factor markets to produce cars.
3. Therefore, the accurate statement is that Ford Motor Company sells cars in the product markets because they sell their finished products to consumers in this market to generate revenue and sustain their business operations.
In summary, the correct answer based on the circular flow model is:
c) They sell cars in the product markets
