Question

The key feature of this circular flow is the

Answer 1

Answer: The key feature is the market

Answer 2

The correct answer is B) market.

The key feature of this circular flow is the market.

We are referring to the circular flow model that explains the way money moves in an economy. In the model of the free market, money is spent by people that need to buy things. Economists called it consumer pending. So the company purchases goods to sell to have a revenue. Suppliers have to invest money to produce goods and this generates a cost. To do so, the supplier has to pay people to produce the resources that generate income for workers.