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.

Question

Social Studies

Lara Owen

1 June, 11:01

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.

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Answers (1)

Know the Answer?

Deborah Haney · Answer 1

Option D.

Explanation:

Businesses earn their revenues from households, is the right answer.

In economics, the circular flow model is a model to explicates money flow throughout an economy. The circular flow of income between the household and business sector is the most common form of this kind of model. This model outlines all of the participants in an economy as either firms or households and it distributes markets into two different divisions known as the:

Markets for goods and services

Markets for factors of production