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Question

Question
A circular flow diagram is shown. A center box is labeled A, with arrows pointing to and from the center box and the top and bottom boxes. The top box is labeled D, and the bottom box is labeled B. A box on the left is labeled C, and a box on the right is labeled Households. The outer boxes B, C, D, and Households are connected by curved lines in a circular shape.

Use the image to answer the question.

Which labels according to the diagram represent expenditures, or goods and services?

(1 point)
Responses

A

A

B

B

C

C

D

Answer 1

In a circular flow diagram, expenditures typically represent the goods and services in the economy. In this case, the labels that would represent expenditures or goods and services are likely to be:

B and C

These boxes generally represent either the firms providing goods and services or other entities involved in the market transactions.

Therefore, the answer would be:

B and C.

Answer 2

pick one