Use the following to answer questions .
Exhibit: Circular Flow Model
-(Exhibit: Circular Flow Model) The exhibit shows a simplified circular flow model where only consumption goods are being produced. 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

Use the following to answer questions .
Exhibit: Circular Flow Model 
-(Exhibit: Circular Flow Model) The exhibit shows a simplified circular flow model where only consumption goods are being produced. 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

Arrow A represents the flow of personal consumption expenditures, which is the spending by households on consumer goods and services.

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