Question

What is the best definition of the circular flow of income?

the wages that workers earn from doing their jobs
the exchange of money between firms and households
the money that consumers spend on goods and services
the influence of the government in a mixed-market economy
✓ Done
5) Intro

Answer 1

B) the exchange of money between firms and households

Answer 2

The correct answer is the exchange of money between firms and households

Explanation: Is a model used to explain economics. Shows the flow of economic activity in diagrammatic format, which includes a financial flow.

It explains the situation of economy.

Represents the flows of money between the two main groups in society, producers and consumers.