Final answer:
The two main sectors in the circular flow model are households and firms. Households are the buyers in the goods and services market, while firms are the producers of goods and services.
Step-by-step explanation:
The two main sectors in the circular flow model are households and firms.
Households are the individuals or groups of people who consume goods and services produced by firms. They are the buyers in the goods and services market.
Firms, also known as businesses, are the producers of goods and services. They sell their products to households in the goods and services market and buy resources, such as labor, from households in the labor market.