In a diagram of the circular flow of economic activity, businesses a. receive goods and services from productive markets. b. buy productive resources from resource markets. c. purchase goods and services from individuals. d. derive income from resource markets.

The correct answer is B.

Business have a double role in economy. They are the manufacturers that produce goods and services to satisfy the needs of consumers therefore, as the graph attached shows, they participate both in the factor and product markets:

On one side, they buy productive factors in the resource markets (land, labor and capital) and they pay for them (salaries, rents and interests respectively).On the other side, they produce goods and services to household in the product market, in exchange for a price. This revenue, after cost deduction, would suppose the profit they earn for the manufacturing activity.