In the simple circular flow model:
A. households are buyers of resources.
B. businesses are sellers of final products.
C. households are sellers of final products.
D. there are real flows of goods, services, and resources, but not money flows.
Answer: B
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Mutual interdependence implies that
a. all other firms in a monopolistically competitive industry rely on one firm to take leadership in setting price b. monopolistically competitive firms will "follower the leader" allowing the monopoly firm to determine price c. each firm within an oligopoly is affected by what the other firms in the industry do d. all firms in the industry are independent of each other e. all firms in the industry must agree before any price changes occur
An increase in the public debt will:
A. decrease the U.S. debt held by citizens and institutions in foreign nations. B. decrease the potential for higher taxation in the United States. C. increase the inequality in the distribution of income. D. increase incentives to work and bear risk.