there is a flow of factors of production from households to firms, and of goods from firms to households, in the factor market. there is a flow of goods from households to firms, and of goods from firms to households, in the factor market. there is flow of factors of production from households to firms, and of factor payments from firms to households, in the factor market. there is flow of expenditure from households to firms, and of factor payments from firms to households, in the product market. there is flow of factors of production from households to firms, and of factor payments from firms to households, in the product market.