According to the Circular Flow Model, Product Markets Are Where

question 67

Multiple Choice

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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Definitions:

Resources

Resources refer to the stock of materials, energy, services, and other assets that can be drawn upon by a person or organization to function effectively.

Growth Capacity

The potential of an entity or environment to expand, increase, or develop further, often measured in terms of productivity or population.

Environment Capacity

The maximum population size of a species that the environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.

Supply Of Resources

The availability or provision of natural, economic, or human elements necessary for production or survival.