Which of the following is a limitation of the simple circular flow model?Multiple Choiceproduct markets are ignored.resource markets are ignored.The determination of product and resource prices is not explained.households are included, but not businesses.

Select Any One Of the Following Options: In a typical circular flow model describing the interaction of businesses and households, which of the following is/are true? I. Households buy factors of production and goods II.  Firms buy factors of production and goods III. Households buy factors of production IV.  Firms buy factors of production V. Firms buy goods VI. Households buy goodsV and VI onlyI onlyIII and IV onlyIV and VI onlyII only

In the simple circular flow model:Multiple Choicebusinesses are suppliers of final products.there are real flows of goods, services, and factors, but not money flows.households are suppliers of final products.households are demanders of factors of production.

In the circular flow model:Multiple Choiceall of these hold true.households receive income through the factor market.households supply factors of production to firms.households spend income in the product market.

The simple circular flow model shows that:Multiple Choicehouseholds are on the demand side of both product and factor markets.businesses are on the supply side of both product and factor markets.households are on the supply side of the factor market and on the demand side of the product market.businesses are on the demand side of the product market and on the supply side of the factor market.

In the circular flow model, which part of the economy would provide materials to businesses?A.HouseholdsB.Resource marketsC.BusinessesD.Product marketsSUBMITarrow_backPREVIOUS