Question

QUESTION:

Which of the following examples would be shown in the bottom half of the circular flow model?

POSSIBLE ANS

North Side Bowling receives a payment from Nathan for bowling five games.

Nathan hires an accountant to review his taxes.

Vintage Antique Shop pays wages to an employee named Nathan.

Nathan purchases an ice cream cone at a restaurant.

Answer 1

The example that would be shown in the bottom half of the circular flow model is Nathan purchasing an ice cream cone at a restaurant.

Step-by-step explanation:

In the circular flow model, exchanges between households and firms are represented. The bottom half of the circular flow model shows the flow of money from households to firms in exchange for labor services and goods and services. Therefore, the example that would be shown in the bottom half of the circular flow model is Nathan purchasing an ice cream cone at a restaurant, as he is a household making a payment to a firm for a good.