Which of the Following Best Illustrates the Circular Flow Model

question 98

Multiple Choice

Which of the following best illustrates the circular flow model in action?

• A) Bobbie goes to work and builds cars,and uses the income she receives to buy food at the grocery store.
• B) Evan buys a new couch;the owner of the furniture store uses some of the money from the sale to pay her supplier,and uses the rest to take her family out to dinner.
• C) Boeing experiences a surge in orders for new airplanes,prompting the company to hire more workers.
• D) All of these answers illustrate the workings of the circular flow model.

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