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Which of the following correctly describes the flow of money in the Circular Flow Model? [4) (1 Point) Businesses pay households wages, rents, and profits in exchange for goods and services. Households provide consumption expenditures to businesses in exchange for goods and services. Households receive money from businesses for the goods they purchase. Businesses provide money to households in exchange for consumption expenditures.

Problemas

Which of the following correctly describes the flow of money in the Circular Flow Model?
[4) (1 Point)
Businesses pay households wages, rents, and profits in exchange for goods and services.
Households provide consumption expenditures to businesses in exchange for goods and services.
Households receive money from businesses for the goods they purchase.
Businesses provide money to households in exchange for consumption expenditures.

Which of the following correctly describes the flow of money in the Circular Flow Model? [4) (1 Point) Businesses pay households wages, rents, and profits in exchange for goods and services. Households provide consumption expenditures to businesses in exchange for goods and services. Households receive money from businesses for the goods they purchase. Businesses provide money to households in exchange for consumption expenditures.

Solución

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Javierprofessionell · Tutor durante 6 años
expert verifiedVerificación de expertos
3.0 (210 votos)

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The correct description of the flow of money in the Circular Flow Model is:<br /><br />Households provide consumption expenditures to businesses in exchange for goods and services.<br /><br />This option correctly describes how households spend money on goods and services provided by businesses, which in turn generates revenue for those businesses.
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