Question

The simplest circular model of the United States economy depicts the economy as a cycle in which resources flow between which two entities?

a. supply and demand
b. businesses and households
c. the government and foreign countries
d. goods and services

Answer 1

The answer is actually B. businesses and households

Just had this on my test :)

Answer 2

The correct answer is letter A. Supply and demand simply depicts the circular model of the US economy. These things determine the flow of goods and services available in the market for the consumption of its people. It also determines the rate of production that manufacturers perform in their particular industries.