In the circular flow model,there are two types of markets: the ________ market and the ________ market.

Question

Quizplus · Accepted Answer

The circular flow model identifies two types of markets, the goods market and the factor market. In the goods market, households purchase goods and services from firms, who produce and supply them. In the factor market, households supply labor and other factors of production to firms, who then pay for those inputs. Therefore, option D, goods and factor markets, is the correct answer.

In the Circular Flow Model,there Are Two Types of Markets