The ultimate goal of studying the circular flow model is to understand the flow of
A)money through the market system
B)consumer spending through the economy
C)goods and services through the product market
D)resources,goods,and money through the economy
E)resources through the resource markets and their allocation in production

Question

Quizplus · Accepted Answer

The circular flow model aims to understand the flow of resources, goods, and money through the economy, from households to firms and back again. It encompasses the flow of resources from households through the resource markets to firms, the production of goods and services by the firms, the distribution of those goods and services to households through the product market, and the payment of income to households in exchange for their resources. Therefore, option D is the best choice.

The Ultimate Goal of Studying the Circular Flow Model Is