In the simple circular flow
A) businesses trade goods and services for resources in the product market.
B) consumers trade resources for goods and services in the factor market.
C) consumers trade goods and services for monetary payments in the factor market.
D) producers trade goods and services for monetary payments in the product market.

Question

Quizplus · Accepted Answer

In the simple circular flow model, producers (or businesses) sell goods and services in the product market, where they trade these goods and services for monetary payments from consumers. This reflects the basic economic transactions in a market economy.

In the Simple Circular Flow