For the first question regarding Miguel's decision to start a business, the response that best analyzes how both risks and rewards might influence his decision is:
The risks and benefits both play a role. Financial gain and personal satisfaction may motivate Miguel, even though he is aware that failure is possible.
This choice acknowledges that while Miguel may recognize the risks involved in starting a business, the potential rewards, including financial gain and personal satisfaction, are also significant motivating factors for him.
For the second question about the relationship between households and businesses in the circular flow model, the most accurate response is:
Households spend money on goods and services from businesses.
This reflects the flow of money where households purchase goods and services produced by businesses, which is a fundamental component of the circular flow model in economics.