In the simple circular flow model:
A)households are demanders of factors of production.
B)businesses are suppliers of final products.
C)households are suppliers of final products.
D)there are real flows of goods, services, and factors, but not money flows.

Question

Quizplus · Accepted Answer

In the simple circular flow model, businesses supply final products to households, which are the consumers. Households supply factors of production (like labor) to businesses. There are both real flows (goods, services, and factors) and money flows (payments for goods and services, and income for factors).

In the Simple Circular Flow Model