Refer to the diagram of the circular flow of income. Based on the diagram, the arrow going FROM box 2 to box 3 must be:

A)payments for inputs used by businesses.
B)incomes earned by resources.
C)spending by households.
D)earnings by businesses.

Question

Refer to the diagram of the circular flow of income. Based on the diagram, the arrow going FROM box 2 to box 3 must be:

A)payments for inputs used by businesses. 
B)incomes earned by resources. 
C)spending by households. 
D)earnings by businesses.

Quizplus · Accepted Answer

The Answer of Refer to the diagram of the circular flow of income. Based on the diagram, the arrow going FROM box 2 to box 3 must be:

A)payments for inputs used by businesses. 
B)incomes earned by resources. 
C)spending by households. 
D)earnings by businesses.

Refer to the Diagram of the Circular Flow of Income