The fact that expenditures on products and payments to owners of resources used to produce those products flow in opposite directions is known as:
A) roundabout production.
B) a barter economy.
C) a pure economy.
D) the circular flow of income.

Question

Quizplus · Accepted Answer

The circular flow of income refers to the idea that money flows from households to firms in exchange for goods and services, while expenditures for those goods and services flow from firms back to households. This creates a circular flow of income and spending within an economy.

The Fact That Expenditures on Products and Payments to Owners