Use the following to answer questions:
Figure: Expanded Circular-Flow Model
-(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. Which of the following is NOT a sector of the economy shown in the circular-flow model?
A)households
B)firms
C)the rest of the world
D)factor markets

Question

Use the following to answer questions:
Figure: Expanded Circular-Flow Model 
-(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. Which of the following is NOT a sector of the economy shown in the circular-flow model?
A)households 
B)firms 
C)the rest of the world 
D)factor markets

Quizplus · Accepted Answer

All sectors of the economy shown in the circular-flow model are households, firms, and the rest of the world. Factor markets are not shown as a separate sector in the model, but are part of the exchange that occurs between households and firms.

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