In the simple circular ﬂow model,
A) households are buyers of resources.
B) businesses are sellers of ﬁnal products.
C) households are sellers of ﬁnal products.
D) there are real ﬂows of goods, services, and resources, but not money ﬂows.

Question

Quizplus · Accepted Answer

In the simple circular flow model, businesses sell final products to households, while households provide resources to businesses. There are both real flows (goods, services, resources) and money flows in the model.

In the Simple Circular ﬂOw Model