Exhibit 1.1

-Refer to the circular-flow model in Exhibit 1.1. If A represents product markets, and D represents firms, then the flow from A to D is:
A) revenue.
B) expenditures.
C) labor, capital, and natural resources.
D) goods and services.
E) wages, interest, rent, and profit.

Question

Exhibit 1.1
 
-Refer to the circular-flow model in Exhibit 1.1. If A represents product markets, and D represents firms, then the flow from A to D is:
A) revenue. 
B) expenditures. 
C) labor, capital, and natural resources. 
D) goods and services. 
E) wages, interest, rent, and profit.

Quizplus · Accepted Answer

In the circular-flow model, product markets (A) provide revenue to firms (D) when goods and services are sold.

Exhibit 1.1 -Refer to the Circular-Flow Model in Exhibit 1.1. If a Exhibit