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. Suppose you have been hired by an electronics store as a salesperson. Which of the following flows represents this transaction?
A) A and B
B) B and C
C) A and D
D) C and D

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. Suppose you have been hired by an electronics store as a salesperson. Which of the following flows represents this transaction?
A) A and B 
B) B and C 
C) A and D 
D) C and D

Quizplus · Accepted Answer

In the circular flow model, the transaction of being hired as a salesperson represents the flow of labor services to the firm (C) and the flow of income (wages) from the firm to the household (D).

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