Asked by
Melissa Payne
on Dec 19, 2024Verified
According to the circular flow model, product markets are where
A) households earn their money incomes.
B) households acquire economic resources from businesses.
C) businesses acquire their inputs from households.
D) businesses earn their revenues from households.
Product Markets
Markets where goods and services are bought and sold, connecting buyers and sellers.
Households
Economic units consisting of all individuals living in a single residence, making decisions about consumption, savings, and investment.
Business Inputs
Goods or services that are used in the production process of other goods or services, including raw materials, components, and labour.
- Gain an understanding of the essential components and their roles in the circular flow model of a market-driven economy.
Verified Answer
KW
Learning Objectives
- Gain an understanding of the essential components and their roles in the circular flow model of a market-driven economy.