Which of the following is not a flow in the circular flow model?
A)the flow of goods and services and the flow of resources to produce goods and services
B)the flow of profit and the flow of revenue
C)the flow of income earned by households and the flow of expenditures incurred by households
D)the flow of revenue received by producers and the flow of payments to resource owners

Question

Quizplus · Accepted Answer

In the circular flow model, profit is not a flow as it is a residual of total revenue minus total costs. Revenue, on the other hand, is a flow as it is the income generated from sales of goods and services.

Which of the Following Is Not a Flow in the Circular