In the circular flow model, which part of the economy would provide materials to businesses?A.HouseholdsB.Resource marketsC.BusinessesD.Product marketsSUBMITarrow_backPREVIOUS

In a typical circular flow model describing the interaction of businesses and households, which of the following is/are true? I. Households buy factors of production and goods II.  Firms buy factors of production and goods III. Households buy factors of production IV.  Firms buy factors of production V. Firms buy goods VI. Households buy goods

In the circular flow model:Multiple Choiceall of these hold true.households receive income through the factor market.households supply factors of production to firms.households spend income in the product market.

Which of the following sectors is responsible for making investments in the circular flow model?  A. Household sector  B. Financial sector  C. Government sector  D. Business sector

Businesses play a role in the circular flow of goods by:A.creating the goods sold at product markets.B.offering labor to product markets for a fee.C.providing natural resources to resource markets.D.consuming products created in households.

Which statement best illustrates the relationship between three different elements of the circular flow of products?A.Product markets create new goods for households, which purchase them directly from businesses.B.Resource markets sell materials to businesses, which use them to make goods sold to households.C.Businesses provide goods to resource markets, which sell them directly to households.D.Households design new products for businesses, which market them using resource markets.