Which of the Following Best Characterizes the Circular Flow Model

question 7

Multiple Choice

Which of the following best characterizes the circular flow model?

• A) Businesses receive revenue from households in exchange for providing inputs and use that revenue to buy goods and services from households.
• B) Households receive income from governments in exchange for providing inputs and use that income to buy goods and services from businesses.
• C) Households receive revenue for selling goods and services to businesses and use that revenue to buy inputs from businesses.
• D) Businesses receive income from households in exchange for providing goods and services and use that income to buy inputs from households.