In the circular flow model, the product market sends __________ to businesses.

• A. resources
• B. wages
• C. goods and services
• D. revenue

Answer: (D)

Verified step by step guidance

1. Understand the circular flow model, which illustrates how money, resources, goods, and services move between households and businesses in an economy.
2. Identify the role of the product market: it is where goods and services produced by businesses are sold to households.
3. Recognize that households pay money to businesses in exchange for goods and services, and this payment is called revenue for businesses.
4. Note that the product market sends this revenue (money received from selling goods and services) to businesses, enabling them to continue production.
5. Therefore, the product market sends revenue to businesses, not resources, wages, or goods and services.