In the circular flow diagram,economic units are classified as

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Quizplus · Accepted Answer

The circular flow diagram illustrates the flow of goods, services, and money between two main economic units - households and producers. Households provide labor and purchase goods and services from producers, while producers hire labor and sell goods and services to households. Other economic units such as governments and importing/exporting firms can also be included in the diagram, but they are ultimately either households or producers in their economic activities. Therefore, B is the best choice as it correctly identifies the main economic units in the circular flow model.

In the Circular Flow Diagram,economic Units Are Classified as