Answered

The circular flow model for goods and services is where...
i. the households sell their factors of production to the factor market where they are purchased by firms
ii. firms consume goods and services offered on the goods market
iii. firms combine factors of production and produce goods and services
iv. goods and services are offered for sale on the factor market
A. Only (i).
B. Only (i) and (iii).
C.
Only (i), (iii) and (iv). X
D. Only (iv).



Answer :

GinnyAnswer
In the circular flow model for goods and services: - (i) is correct: households sell their factors of production (like labor, land, and capital) to the factor market where they are purchased by firms. - (ii) is missing in the given options, but it would state that households consume goods and services offered on the goods market. - (iii) is correct: firms combine factors of production and produce goods and services. - (iv) is incorrect as goods and services are offered for sale on the goods market, not the factor market. Therefore, the correct choices are: A. Only (i). B. Only (i) and (iii). These choices accurately represent the flow of goods, services, and factors of production in the circular flow model.