Figure 6-1 shows the circular flow model where only consumption goods are being produced. Use the figure to answer questions .
Figure 6-1
-Refer to Figure 6-1. The arrow marked "A" represents the flow of:
A) personal consumption expenditures.
B) consumer goods and services.
C) factors of production.
D) factor incomes.

Question

Figure 6-1 shows the circular flow model where only consumption goods are being produced. Use the figure to answer questions .
Figure 6-1 
-Refer to Figure 6-1. The arrow marked "A" represents the flow of:
A) personal consumption expenditures. 
B) consumer goods and services. 
C) factors of production. 
D) factor incomes.

Quizplus · Accepted Answer

The arrow marked "A" represents the flow of personal consumption expenditures, which are the payments made by households to purchase goods and services.

Figure 6-1 Shows the Circular Flow Model Where Only Consumption