Question

In the circular flow of income A. households buy goods and services and firms supply goods. Resources are supplied by other firms. B. households demand goods and services which are supplied by​ firms, and the firms demand resources that are supplied by intermediate firms. C. households buy goods and services while firms sell goods and services. Firms obtain labor from​ households, capital from​ government, and raw materials from firms. D. households demand goods and services that are supplied by​ firms, while supplying resources that are demanded by firms.

Answer 1

Answer:

D. households demand goods and services that are supplied by​ firms, while supplying resources that are demanded by firms.

Explanation:

The circular flow of income shows how money moves in an economy. Firms pay households for resources needed in production. The money flows back to firms when households demands goods and services from firms.

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