In the circular-flow model, firms demand all of the following except:
A) labor.
B) goods and services.
C) capital.
D) entrepreneurial ability.
E) natural resources.

Question

Quizplus · Accepted Answer

In the circular-flow model, firms supply goods and services, not demand them. They demand factors of production such as labor, capital, entrepreneurial ability, and natural resources to produce goods and services.

In the Circular-Flow Model, Firms Demand All of the Following