The model that allows household to earn income when firms purchase factors in markets is the circular-flow model.
What do firms purchase from the market?
In the circular flow mode, firms go into the factor market and purchase factors of production such as labor, and investment. Households will make money from these through salaries to laborers and returns on investments to investors.
The households will then go into the consumer market with the money made from the factor market, and buy goods and services that are offered by the firms.
Find out more on the circular flow model at https://brainly.com/question/1433471
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