In the circular flow diagram model:
A. households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses.
B. businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households.
C. households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses.
D. Both (a) and (b) are correct.
Answer:D
In the circular flow diagram model:
A. households receive income from businesses in exchange for providing inputs and use that income to buy goods and services from businesses. B. businesses receive revenues from households in exchange for providing goods and services and use those revenues to buy inputs from households. C. households receive revenue for selling goods and services to businesses, and use that revenue to buy inputs from businesses. D. Both (a) and (b) are correct.
Explanation: 31. Regardless of whether you are looking through the microeconomics microscope or the macroeconomics telescope, the fundamental subject material of the interconnected __________ doesn’t change.