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

Question

Quizplus · Accepted Answer

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

The Two Basic Markets Shown by the Simple Circular Flow