In the circular flow diagram, the clockwise direction shows the flow of _____, where households supply _____ and businesses supply _____.
A) money; purchases of goods and services; income to households
B) money; labor; goods and services
C) goods and services; labor; goods and services
D) goods and services; purchases of goods and services; income to households

Question

Quizplus · Accepted Answer

In the circular flow diagram, the clockwise direction typically represents the flow of goods and services. Households supply labor, and businesses supply goods and services.

In the Circular Flow Diagram, the Clockwise Direction Shows the Flow