What is the purpose of the "circular flow model of a market economy?"

A. It shows how the government interacts with households and firms in the marketplace.

B. It shows the alternative ways to use a country's productive resources.

C. It shows how households and firms exchange money, resources, and products in the marketplace.

D. It shows the number of good demanded by consumers.

Question

Chelsea Saunders

Business

29 March, 00:39

What is the purpose of the "circular flow model of a market economy?"

A. It shows how the government interacts with households and firms in the marketplace.

B. It shows the alternative ways to use a country's productive resources.

C. It shows how households and firms exchange money, resources, and products in the marketplace.

D. It shows the number of good demanded by consumers.

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Answers (1)

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Valinto · Answer 1

C. It shows how households and firms exchange money, resources, and products in the marketplace.

Explanation:

the diagram of circular flow, shows the graphical representation of the exchange of goods, services and money between households and companies, where both parties interact in a reciprocal manner in terms of what they offer and receive. in order to generate the flow of the economy.