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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

D
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Answer 1

In a circular flow diagram, typically the labels that represent expenditures, or goods and services, are those that indicate the flow of money or resources from households to businesses (in exchange for goods and services).

Based on typical labeling in such diagrams:

• B usually refers to goods and services provided by businesses.
• D could potentially refer to expenditures made by households for those goods and services.

Therefore, both B and D likely represent expenditures or goods and services in the context of your question.

So, the responses would be B and D.