In the circular flow model of the market system, business firms:
A) Buy products and resources
B) Sell products and resources
C) Buy products and sell resources
D) Sell products and buy resources

Question

Quizplus · Accepted Answer

Business firms produce and sell products to households and other firms in exchange for revenue. They also purchase resources such as labor, land, and capital goods from households and other firms in order to produce those products. Therefore, business firms sell products and buy resources in the circular flow model.

In the Circular Flow Model of the Market System, Business