Asked by Rojita Malla on Jun 29, 2024
Verified
In the circular flow model, households act as buyers in the resource markets.
Circular Flow Model
A diagram that demonstrates the movement of money, resources, and goods and services in an economy between households, firms, and the government.
Resource Markets
Marketplaces where resources (like labor, capital, and raw materials) used to produce goods and services are bought and sold.
- Grasp the concept and significance of the circular flow model in understanding economic activities.
Verified Answer
MW
Menna WahidJun 30, 2024
Final Answer :
False
Explanation :
In the circular flow model, households act as sellers in the resource markets, offering labor and other resources, while firms act as buyers.
Learning Objectives
- Grasp the concept and significance of the circular flow model in understanding economic activities.
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