How do individuals contribute to the circular flow of economic activity? A) Businesses buy goods and services from individuals. B) Businesses purchase productive resources in product markets. C) Individuals provide labor for factor markets and buy goods in product markets. D) Individuals buy productive resources from factor markets and provide labor for product markets.

Question

Kolton

Business

12 April, 22:40

How do individuals contribute to the circular flow of economic activity? A) Businesses buy goods and services from individuals. B) Businesses purchase productive resources in product markets. C) Individuals provide labor for factor markets and buy goods in product markets. D) Individuals buy productive resources from factor markets and provide labor for product markets.

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Answers (1)

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Sherman · Answer 1

C

Explanation:

Individuals provide labor for factor markets and buy goods in product markets.

Market Activity is performed as two cycles moving in opposite directions. In one direction, there is a flow of goods and services from individuals to businesses and back again. This concept is simplified in that as laborers, we go to work to make things or provide services that people want.