How does the Circular Flow Model illustrate the relationship between households and businesses in the Resource Market?(1 Point) Households provide resources such as labor land, and capital to businesses, and in return receive wages, rents, and profits. Households purchase resources from businesses and resell them to the government. Businesses provide resources to households in exchange for wages. Households sell goods and services to businesses.

The correct answer is:<br /><br />**Households provide resources such as labor, land, and capital to businesses, and in return, receive wages, rents, and profits.**<br /><br />### Explanation:<br />In the Circular Flow Model, the **Resource Market** (also called the Factor Market) illustrates how households and businesses interact. Households own the factors of production (labor, land, and capital) and supply these resources to businesses. In exchange, businesses pay households in the form of wages (for labor), rents (for land), and profits (for capital). This interaction forms one side of the circular flow of economic activity.