15
QuizMultiple Choice

Introduction to Macroeconomics — Quiz

Question 15 • Personal Finance and Economics

The circular flow model examines interactions between which two groups?

Answer
A
firms and producers
B
households and consumers
C
firms and government
D
households and firms

Explanation

The circular flow model shows how households and firms interact in the economy. Households provide resources, such as labor, to firms and receive income; firms use those resources to produce goods and services that households buy. Therefore, the correct choice is households and firms.

AI-written and checked against the verified answer.

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