30
QuizMultiple Choice

The Economy of the US — Unit test

Question 30 • EA Academy Civics 9

What is the next step in the circular flow of income after workers receive wages?

Answer
A
The money becomes part of a firm’s resources.
B
The money becomes part of a household’s income.
C
The money is used to pay for factors of production.
D
The money is used to produce goods and services.

Explanation

Workers are members of households, so when they receive wages, that money becomes part of their households’ income. Households may then spend some of that income on goods and services, but the immediate next step is that it counts as household income.

AI-written and checked against the verified answer.

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