Answered

Households play a role in the circular flow of goods by:

A. providing natural resources to businesses.
B. purchasing goods at product markets.
C. designing and producing new goods.
D. selling goods that companies produce.



Answer :

GinnyAnswer

Final answer:

Households in the circular flow model purchase goods at product markets, provide factors of production like labor and capital, and play a crucial role in the economy.


Explanation:

In the circular flow model, households play a pivotal role by purchasing goods at product markets. They are the consumers who demand and consume goods and services provided by firms. Additionally, households provide factors of production like labor and capital, necessary for businesses to produce goods and services.


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