In the circular flow diagram businesses pay wages, rent, interest, and profits to households in return for the use of factors of production. through the factor market businesses purchase goods and services from households in return for consumption dollars. through the factor market households pay wages, rent, interest, and profits to households in return for use of the factors of production. households purchase goods and services from businesses in return for profits. businesses sell goods and services to households in return for rent, wages, interest, and profits.