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.

Question

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

D

Answer 1

In the circular flow diagram described, the labels that represent expenditures, or goods and services, are typically associated with the boxes that provide goods and services, which would be labels B and D.

So the correct responses are:

B and D.