In the circular flow model, firms use the money they earn from selling their goods and services to pay for the
A) goods and services they buy on the product market
B) resources they buy on the product market
C) goods and services they buy on the resource market
D) resources they buy on the resource market
E) differences between the revenue they earn selling the goods and services and the costs involved in producing them

Question

Quizplus · Accepted Answer

In the circular flow model, firms use the money they earn from selling goods and services to pay for the resources (like labor, land, and capital) they buy on the resource market. These resources are necessary for production.

In the Circular Flow Model, Firms Use the Money They