According to the circular ﬂow model, product markets are where
A) households earn their money incomes.
B) households acquire economic resources from businesses.
C) businesses acquire their inputs from households.
D) businesses earn their revenues from households.

Question

Quizplus · Accepted Answer

Product markets are where businesses sell their goods and services to households, who then provide the businesses with revenue. Therefore, businesses earn their revenues from households in product markets.

According to the Circular ﬂOw Model, Product Markets Are Where