In the circular flow model, which of the following is on the buying side in the goods market?
i. Firms
ii. Households
iii. Federal, state and local governments

Question

Quizplus · Accepted Answer

In the circular flow model, households and governments are on the buying side of the goods market. Households purchase goods and services for personal use, while governments buy goods and services for public use and infrastructure. Firms, on the other hand, are typically on the selling side in the goods market, producing goods and services for sale.

In the Circular Flow Model, Which of the Following Is