According to the circular flow model, product markets are where:
A) Households earn their money incomes
B) Businesses incur their consumption expenditures to households
C) Businesses acquire their inputs from households
D) Businesses earn their revenues from households

Question

Quizplus · Accepted Answer

Product markets are where businesses sell their goods and services to households, who in turn purchase them, thereby generating revenue for the businesses. Therefore, businesses earn their revenues from households in product markets.

According to the Circular Flow Model, Product Markets Are Where