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ANTONII [103]
3 years ago
10

In what part of the circular flow model do households provide services to and receive payments from firms? Economic development

Financial investment Purchases Labor market
Business
1 answer:
JulsSmile [24]3 years ago
6 0

Answer:

Purchases Labor market

Explanation:

A simple circular flow of income model is and economic model that shows the movement of goods and services between the firm and the house hold and in the opposite direction is the flow of money between the firm and the household.

The Household provides factor input to the firm and in return receives rewards for the input in form of money from the firm, the firm on the other hand supply the household with goods and services and receives payment from the household, these transaction flow is thought of as a movement in circular direction, hence the term circular flow of income.

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