Question

__ is the main thing exchanged in monetary flow in the circular flow model.

Option 1: Goods and services
Option 2: Resources and factors of production
Option 3: Money and financial assets
Option 4: Labor and wages

Answer 1

In the circular flow model, the main thing exchanged in monetary flow is goods and services.

Step-by-step explanation:

In the circular flow model, the main thing exchanged in monetary flow is Option 1: Goods and services. This means that households purchase goods and services from firms and pay for them with money. On the other hand, firms receive money from households in exchange for the goods and services they provide.