The diagram that illustrates how households and businesses interact through product and resource markets is called the
A) product-resource diagram.
B) economic agents' graph.
C) circular flow diagram.
D) economic interactivity diagram.

Question

Quizplus · Accepted Answer

The circular flow diagram is a visual representation of how households and businesses interact through product and resource markets. It shows the flow of money, goods, and services between these two groups, highlighting the interdependence of the two sectors in the economy. The diagram helps to explain how economic transactions take place and how resources are allocated in a market economy.

The Diagram That Illustrates How Households and Businesses Interact Through