In the circular flow model, households earn their incomes in the:
A) Resource markets
B) Product markets
C) Capitalist markets
D) Money markets

Question

Quizplus · Accepted Answer

In the circular flow model, households provide their labor, land, and capital to firms in exchange for income in the resource markets. Therefore, households earn their incomes in the resource markets. Product markets are where firms sell their goods and services, capitalist markets refer to a type of economic system, and money markets deal with the borrowing and lending of short-term funds.

In the Circular Flow Model, Households Earn Their Incomes in The