In the circular flow model, for every flow of goods, services, and resources there is acounter-flow of
A) more goods, services, and resources
B) people from firms to households
C) people from households to firms
D) money
E) land, labor, capital, and entrepreneurship

Question

Quizplus · Accepted Answer

In the circular flow model, the counter-flow to the flow of goods, services, and resources is money. Firms pay households for resources (labor, land, capital) with money, and households pay firms for goods and services with money.

In the Circular Flow Model, for Every Flow of Goods