In terms of the circular flow diagram businesses obtain revenue through the _____ market and make expenditures in the _____ market.
A)product; financial
B)factor; product
C)product; factor
D)capital; product

Question

Quizplus · Accepted Answer

In the circular flow diagram, businesses obtain revenue by selling their products in the product market and make expenditures by acquiring factors of production such as labor and capital in the factor market. Therefore, the correct choice is C, which states that businesses obtain revenue through the product market and make expenditures in the factor market.

In Terms of the Circular Flow Diagram Businesses Obtain Revenue