The circular flow model shows that consumer goods and services produced by business firms are sold in the

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Consumer goods and services are sold in the goods market, which is a part of the circular flow model where households purchase products produced by business firms. The labor market refers to the market where households supply labor to business firms in exchange for wages or salaries. The factor market involves the buying and selling of resources such as land, labor, and capital. The financial market deals with the buying and selling of financial instruments like stocks, bonds, and currencies.

The Circular Flow Model Shows That Consumer Goods and Services