Multiple Choice
In the context of the circular flow diagram, the space program primarily represents which aspect of government involvement?
45
views
0. Basic Principles of Economics
Circular Flow Diagram
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In the circular flow diagram, households receive goods and services and pay firms for them in the ______________.
A
product market
B
labor market
C
financial market
D
factor market
Verified step by step guidance1
Understand the circular flow diagram, which illustrates the movement of goods, services, and resources between households and firms.
Identify that households provide factors of production (like labor) to firms through the factor market and receive income in return.
Recognize that households use their income to purchase goods and services from firms in the product market.
Note that the product market is where goods and services are exchanged between firms and households, with households paying firms for these goods and services.
Conclude that the correct market where households receive goods and services and pay firms is the product market.
Related Videos
Related Practice
Circular Flow Diagram practice set
Problem sets built by lead tutorsExpert video explanations