Which of the following best explains why the free-market system follows a circular flow model?

A. The free choices made by consumers and producers influence each other.

B. Goods and services are constantly recycled in a circular manner.

C. The allocation of resources affects both production and distribution.

D. Profits flow in a circular way back and forth between consumers and producers.

Question

Social Studies

Serena Roy

3 January, 03:10

Which of the following best explains why the free-market system follows a circular flow model?

A. The free choices made by consumers and producers influence each other.

B. Goods and services are constantly recycled in a circular manner.

C. The allocation of resources affects both production and distribution.

D. Profits flow in a circular way back and forth between consumers and producers.

+2

Answers (1)

Know the Answer?

Bronson Frederick · Answer 1

A. the free choices made by consumers and producers influence each other

(supply and demand) customers want x, y, and z, so producers create x, y, and z, and so on.