The circular flow model shows that the goods and services produced by business firms are sold through:
A) product markets.
B) stock markets.
C) money markets.
D) resource markets.

Question

Quizplus · Accepted Answer

The circular flow model shows a flow of goods and services from firms to households through product markets, and a flow of resources (such as labor) from households to firms through resource markets. The other choices (B and C) are not directly related to the flow of goods and services in the circular flow model, and D is only relevant for the flow of resources, not goods and services.

The Circular Flow Model Shows That the Goods and Services