Harold rents out forty acres of bottom land to a vegetable farmer. in the circular flow model, where would harold reside and where would his rental transactions occur

Harold resides in the household and the transaction occurs in the resource market.
In the scenario above, The farmers are the one that run an operation, not harold, so we can detemine that Harold resides in a houshold.
Since the exchange involves either land, Capital, labor ,orentrepreneurial ability, the transaction occurs in the resource market.

For Harold, he would reside as a goods and services market, selling services (the rental property) to the vegetable farmer. In this case, his rental transactions would occur in between the labor, capital and land and the household. Harold's services are, in fact the land which he collects money for.

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