In the circular-flow model, households:
A) receive transfer payments from the government.
B) buy resources in the factor markets.
C) sell products in the market for goods and services.
D) issue stocks and bonds to raise capital.

Question

Quizplus · Accepted Answer

Households receive transfer payments from the government, such as social security or unemployment benefits, as part of the circular-flow model.

In the Circular-Flow Model, Households