If Lacy buys a smoothie at the corner store, which of the following best relates this transaction to the circular flow model?
A) Goods flow from firms and money flows from households through the product markets.
B) Resources (land, labor, or capital) flows from households, and money flows from business in the product markets.
C) Income flows from the factor markets, and goods flow into the factor markets.
D) Resources flow into households, and back into the goods and services markets.
Correct Answer:
Verified
Q11: Economic values that are measured in units
Q38: Resources that flow through the circular flow
Q55: The lower portion of the circular flow
Q57: The portion of the four-sector circular flow
Q59: Which one of the following statements is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents