Question

Use the drop-down menus to complete the statements.
In the circular flow model, households provide
to firms. This is represented by the letter A.
In return, within the circular flow model, firms provide households with
. This is represented by the letter B.
Firms then provide
to households. This is represented by the letter C.
Finally, households provide their
to firms. This is represented by the letter D.

Answer 1

A: factors of production (resources such as labor, land, capital)
B: income (wages, rent, interest, profit)
C: goods and services
D: consumer spending (money/expenditures)