Questions
MUF0062 Economics Unit 2 - Semester 2, 2025 Two-sector Circular Flow Model: Diagram and Quick Quiz (10 - 12 minutes)
Single choice
According to the two-sector circular flow model, are firms demanding or supplying resources (land, labour, capital and enterprise)?
Options
A.a. Demanding
B.b. Neither
C.c. Supplying
D.d. Both
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Verified Answer
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Step-by-Step Analysis
To tackle this question, let's lay out what the two-sector circular flow model shows about the interaction between firms and households.
In this model, households own the factors of production—land, labor, capital, and entrepreneurship—and supp......Login to view full explanationLog in for full answers
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