Asked by Prince Osman on May 09, 2024
Verified
Refer to Figure 2-1. Which arrow represents the flow of spending by households?
A) B
B) A
C) C
D) D
Spending By Households
Total expenditures made by individual consumers on goods and services in an economy.
- Grasp the concept of the circular-flow diagram and its components.
Verified Answer
SM
SILVIYA MAMACHANMay 11, 2024
Final Answer :
B
Explanation :
Arrow A represents the flow of spending by households, as it typically points from households to firms in the circular flow model, indicating the purchase of goods and services.
Learning Objectives
- Grasp the concept of the circular-flow diagram and its components.