Figure 2-2

-Refer to Figure 2-2.The figure represents a circular-flow diagram.Andrea regularly buys fruits and vegetables at a grocery store.Michael regularly pays a lawn-care company to mow his lawn.If the flow of fruits and vegetables from the grocery store to Andrea is represented by an arrow from Box C to Box B,then the money paid by Michael to the lawn-care company is represented by an arrow

Question

Figure 2-2
 
-Refer to Figure 2-2.The figure represents a circular-flow diagram.Andrea regularly buys fruits and vegetables at a grocery store.Michael regularly pays a lawn-care company to mow his lawn.If the flow of fruits and vegetables from the grocery store to Andrea is represented by an arrow from Box C to Box B,then the money paid by Michael to the lawn-care company is represented by an arrow

Quizplus · Accepted Answer

Box B represents households, and Box C represents businesses or firms. The arrow from Box C to Box B represents the flow of goods and services from businesses to households, which in this case is the fruits and vegetables Andrea is buying. The money that Michael pays to the lawn-care company represents the flow of money from households to businesses, which is represented by an arrow from Box B to Box C. Therefore, choice B is correct.

Figure 2-2 -Refer to Figure 2-2.The Figure Represents a Circular-Flow Diagram.Andrea Regularly