In the circular flow model of the market system, business firms' major role is to
A) buy products and resources.
B) sell products and resources.
C) buy products and sell resources.
D) sell products and buy resources.

Question

Quizplus · Accepted Answer

In the circular flow model, businesses are producers of goods and services, and their major role is to sell these products to households and other firms. At the same time, businesses must purchase resources such as labor and materials to produce these goods and services. Therefore, businesses are primarily involved in selling products and buying resources.

In the Circular Flow Model of the Market System, Business