Q8 QUESTION 8In the circular flow diagram model:households receive income from businessesin exchange for providing inputs and use thatincome to buy goods and services frombusinesses.businesses receive revenues fromhouseholds in exchange for providing goodsand services and use those revenues to buyinputs from households.households receive revenue for selling goodsand services to businesses, and use thatrevenue to buy inputs from businesses.Both (a) and (b) are correct.

A circular flow model illustrates the flow of goods, services, money, etc. among the different…

Answered: In the circular flow diagram model: O…

In the circular flow diagram model: O households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 1PA

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