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15 February, 08:00

What is the best definition of the circular flow of income?

the wages that workers earn from doing their jobs

the exchange of money between firms and households

the money that consumers spend on goods and services

the influence of the government in a mixed-market economy

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  1. 15 February, 09:01
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    The correct answer is the exchange of money between firms and households

    Explanation: Is a model used to explain economics. Shows the flow of economic activity in diagrammatic format, which includes a financial flow.

    It explains the situation of economy.

    Represents the flows of money between the two main groups in society, producers and consumers.
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