Which of the following are separate flows (shown in different parts of the model)in the circular flow model?
A)the flow of goods and the flow of services
B)the flow of costs and the flow of revenue
C)the flow of income earned from the sale of resources and the flow of expenditures on goods and services
D)the flow of income received by households and the flow of tax revenues paid by households

Question

Quizplus · Accepted Answer

The flow of income earned from the sale of resources (such as labor) goes to households, while the flow of expenditures on goods and services goes to firms. These are two separate flows in the circular flow model. The other choices are not separate flows, but rather two sides of the same flow (such as revenue and costs both being part of the flow of goods and services).

Which of the Following Are Separate Flows (Shown in Different