Which statement accurately describes the circular-flow model?

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When Susan earns a wage working for BAe Systems, the exchange occurs in the goods and services market.The sale of a military aircraft by BAe Systems happens in the market for production inputs.None of the above statements are correct.Households are the owners of the factors of production.

Explanation

Option A is incorrect because salary payments occur in the market for factors of production, not the goods and services market. Option B is wrong since selling a military aircraft is a transaction in the goods and services market, not the factor market. Option D is correct because households supply and own the factors of production such as labor, land, and capital in the circular-flow diagram.