Circular Flow Model | Definition & Examples
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Circular Flow Model | Definition & Examples
73K viewsFeb 9, 2016
Study.comBrianna Whiting
SOLVED: What is the circular-flow diagram and what does it illustrate?A. The circular-flow diagram shows how households and firms are linked through product markets.B. The circular-flow diagram shows how households and firms are linked through product and factor marketsC. The circular-flow diagram shows the maximum attainable combinations of two products that may be produced with available resources and current technology.D. The circular-flow diagram shows the government's role in markets throug
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Identify each of the following as involving either demand or supply. Draw a circular flow diagram and label the flows A through F. (Some choices can be on both sides of the goods market.) a. Households in the labor market b. Firms in the goods market c. Firms in the financial market d. Households in the goods market e. Firms in the labor market f. Households in the financial market | Numerade
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