ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Households are demanders in the product market and suppliers in the factor market
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Business are demanders in the product market and suppliers in the factor market.
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Households are demanders in the factor market and suppliers in the product market.
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Businesses and households are not components of the circular flow diagram.
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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: -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-4: -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-5: -The correct option is c. Household spending flows through product markets.