The circular flow model shows that goods and services flow from

Question

Quizplus · Accepted Answer

The circular flow model shows that businesses produce goods and services to sell to households and other businesses in the goods market, while households provide factors of production (such as labor, capital, and land) to businesses in the factor market. As a result, the goods and services flow from businesses to households in exchange for payment, which represents the money flow in the circular flow model. Therefore, choice D - businesses to households - is the correct answer.

The Circular Flow Model Shows That Goods and Services Flow