ECONOMICS
GDP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Households sell goods and services to business firms
|
|
|
Households sell resources to business firms
|
|
|
Business firms sell resources to households
|
|
|
Business firms sell goods and services to households
|
|
|
Households buy resources from business firms
|
Detailed explanation-1: -The correct option is C. households sell resources to business firms. In the circular flow model consisting of households and businesses only two markets exist. One for products and another for resources.
Detailed explanation-2: -The correct answer is C. Goods and services (products) flow from businesses to the goods and services market.
Detailed explanation-3: -10. Which of the following is true according to the circular flow model? factor markets. Explanation: In the circular flow model, households demand goods and services in the product market and supply the factors of production (land, labor, capital, and entrepreneurship) in the factor market.
Detailed explanation-4: -Which statement is true about the circular flow diagram of an economy? The market for goods and services connects household spending to government spending.
Detailed explanation-5: -The circular flow model demonstrates how money moves from producers to households and back again in an endless loop. In an economy, money moves from producers to workers as wages and then back from workers to producers as workers spend money on products and services.