The circular flow model
A)measures identical flows through the different markets
B)shows how firms maximize profits and minimize costs
C)shows how competitive markets interact with noncompetitive markets
D)measures the value of income earned by the public sector
E)measures the value added by the business sector as it uses funds

Question

Quizplus · Accepted Answer

The circular flow model illustrates the flow of goods and services and money between different sectors of the economy, showing identical flows through the product and factor markets.

The Circular Flow Model