The two basic markets shown by the simple circular flow model are:
A)capital goods and consumer goods.
B)free and controlled.
C)product and factor.
D)household and business.

Question

Quizplus · Accepted Answer

The simple circular flow model illustrates the flow of goods and services and factors of production between households and businesses, highlighting the product market (where goods and services are bought and sold) and the factor market (where resources or factors of production like labor, land, and capital are bought and sold).

The Two Basic Markets Shown by the Simple Circular Flow