In the Circular Flow Model,households

question 61

Multiple Choice

In the circular flow model,households

• A)sell goods and services in the input market.
• B)and firms spend earnings from resource sales on goods and services in the factor market.
• C)hire resources sold by firms in the factor market.
• D)spend earnings from resource sales on goods and services in the product market.

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Definitions:

Personally Liable

Holding personal responsibility to settle a debt or legal judgment, affecting one's own assets and finances.

Reverts

Returns to a previous state or condition, often after a temporary change.

Real Property

Land and anything permanently attached to it.

Repudiates

The act of refusing to acknowledge, accept, or support something; in a contract context, it refers to the denial of a contractual obligation.