In the circular flow model of the economy, the resource market is where
A) consumers purchase consumer goods and services
B) firms purchase goods and services
C) consumers supply goods and services
D) firms purchase labor, land, and capital
E) consumers purchase labor and capital

Question

Quizplus · Accepted Answer

In the circular flow model, the resource market is where firms purchase resources such as labor, land, and capital to produce goods and services. This is distinct from the product market, where consumers purchase the goods and services produced by firms.

In the Circular Flow Model of the Economy, the Resource