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Use the drop-down menus to complete the statements.
In the circular flow model, households provide
to firms. This is represented by the letter A.
In return, within the circular flow model, firms provide households with
. This is represented by the letter B.
Firms then provide
to households. This is represented by the letter C.
Finally, households provide their
to firms. This is represented by the letter D.

Respuesta :

calikat1309

Answer:

1- factors of production

2- goods/services

3- income

4- expenditures

Explanation:

just got it right on edge

Parrain

The circular flow model:

  • Households provide (A) factors of production  to firms ⇒
  • Firms provide households with B. Goods/ services ⇒
  • Firms then provide  C. income to households. ⇒
  • Finally, households provide their  D. expenditures to firms.

The Circular flow model describes the co-existent relationship that households and firms have.

In this model, the Household:

  • provides factors of production to firms such as labor to work and land and capital as investment.
  • would also spend their money on the goods and services that firms provide them with

The firms would then:

  • provide the households with goods and services which they were able to produce because of the factors of production provided to them.
  • provide income to the households as payment for the factors of production.

In conclusion, both firms and households operate a symbiotic relationship where both rely on each other for survival according to the Circular flow model.

Find out more at https://brainly.com/question/11324259.

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