In the circular flow diagram, households demand ________ and supply ________.
A) labor; labor
B) goods; services
C) goods and services; labor
D) labor; goods and services

Question

Quizplus · Accepted Answer

In the circular flow diagram, households demand goods and services from businesses through their expenditures on consumer goods and services. At the same time, households supply labor to businesses in exchange for wages or salaries. Therefore, households demand goods and services and supply labor in the circular flow diagram.

In the Circular Flow Diagram, Households Demand ________ and Supply