According to the circular flow model, households buy goods and services that businesses make available in the market.
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In the circular flow diagram, which of the following is true in the product market? (A) Households sell goods and services to business firms. (B) Households sell resources to business firms. (C) Business firms sell resources to households. (D) Business firms sell goods and services to households. (E) Households buy resources from business firms.
In the circular-flow diagram, which of the following items flows from households to firms through the markets for goods and services?
Rashmi S.
2. As depicted in the circular flow diagram, firms: A. demand the goods and services that households supply in product markets. B. supply the goods and services that households demand in product markets. C. demand the resources that households supply in product markets. D. supply the resources that households demand in factor markets.
Hubert A.
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