Which Statement Best Describes The Circular Flow Model? Which statement best describes the circular flow model? The model represents the movement of money and resources throughout the economy. The model represents the interactions within sectors. What is the circular flow model quizlet? The Circular Flow Model. Describes the flow of resources, goods and services and
What Are The Flows In This Circular Flow Model? One of the most useful is the circular flow model. The circular flow model highlights the “flows” within the economy—the flow of economic resources, goods and services, and the flow of money. What are two flows in the circular model? Money flow and real flow are
What Flows From Government To Firms? What flows from government to firms? Households receive income from firms. They also receive money from the government (transfers) and must pay money to the government (taxes) . Households spend some of their disposable income and save the rest. What is real flow and money flow? Real flows refer
What Economic Activities Flow From Businesses To Households? What economic activities flow from businesses to households? Businesses sell goods and services to households, earning revenue and generating profits. Businesses also pay wages, interest and profits to households in return for the use of their factors of production. Governments levy taxes on households and businesses in