19. In the simple circular flow model: A. households are buyers of resources. B.

Question

19. In the simple circular flow model: A. households are buyers of resources. B. businesses are sellers of final products. C. households are sellers of final products. D. there are real flows of goods, services, and resources, but not money flows Flow 1 Resource Market... Flow Businesses Households Flow 3 Product Market Flow 4 20. Refer to the above diagram. Flow (1) represents: A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability. C. goods and services. D. consumer expenditures. E production cost 21. Refer to the above diagram. Flow (2) represents A. wage, rent, interest, and profit income. B. land, labor, capital, and entrepreneurial ability C. goods and services. D. consumer expenditures. 22. Refer to the above diagram. Flow (3) represents: A wage, rent, interest, and profit income B. land, labor, capital, and entrepreneurial ability C. goods and services. goods and Capital, and roft

Explanation / Answer

19. B) businesses are sellers of final products.

Firms sell final products to consumers and consumers spends its money to purchase goods.

20. A) Wage, rent, interest and profit income.

Resource market includes supply of labor by the household sector to businesses. In return, businesses pays rent, wages, interest and profit to households.

21. B) land, labor, capital and entrepreneurial ability.

Household sector provides land, labor, capital and entreprenurial ability to businesses for which they recieves money in return.

22. C) goods and services

Businesses supply goods and services to household sector.

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