Questions
ECON 2002.01 AU2025 (21333) Midterm Exam 2- Requires Respondus LockDown Browser
Single choice
The circular flow model shows ___.
Options
A.how the product markets, the resource markets, and the financial markets relate to each other in the economy
B.that changes in the product markets are unlikely to affect the resource markets
C.that a dollar spent in one market tends to stay in that market
D.firms supply resources to the factor market
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Step-by-Step Analysis
The question asks about what the circular flow model shows in economics.
Option 1: 'how the product markets, the resource markets, and the financial markets relate to each other in the economy' is accurate because the circular flow diagram maps the interactions between households and firms across different markets, including product markets (goods and services), resource (factor) markets (inputs like labor and capital), and, in more......Login to view full explanationLog in for full answers
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