Question

Which statement best illustrates the relationship between three different

elements of the circular flow of products?
O A. Households pay wages to businesses, which can then set up
product markets.
O B. Product markets offer labor to businesses, which creates jobs for
households.
O C. Businesses create goods for product markets, which sell them
directly to households.
O D. Resource markets sell goods to product markets, which sell the
goods to businesses

Answer 1

C

Step-by-step explanation:

GDP can be represented by the circular flow diagram as a flow of income going in one direction and expenditures on goods, services, and resources going in the opposite direction. In this diagram, households buy goods and services from businesses and businesses buy resources from households.