The Following Question Are Based on the Following Circular Flow

The following question are based on the following circular flow diagram:

-In a simple circular flow model of an economy

A) households buy factors of production from businesses.
B) the flow of income to households from businesses is greater than the flow of expenditures by households for goods produced by businesses.
C) businesses buy final goods and services produced by households.
D) the total amount of labor hours worked equals the total number of goods produced.
E) households are owners of resources and purchasers of final goods and services.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Sign up to view answer