The two basic markets shown by the simple circular flow model are
A)capital goods and consumer goods.
B)competitive and regulated.
C)product and resource.
D)household and business.

Question

Quizplus · Accepted Answer

The simple circular flow model in economics illustrates the continuous movement of money, resources, and goods and services between producers and consumers. It highlights two primary types of markets: the product market, where goods and services are sold to consumers, and the resource market, where resources (like labor, capital, and raw materials) are sold to businesses.

The Two Basic Markets Shown by the Simple Circular Flow