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Which of the following are the two key groups of participants in the circular flow of income? yA, households and firms OB. ° C. government and financial institutions 0 D. domestic residents and foreign residents

Sagot :

The two key groups of participants in the circular flow of income are Households and firms. The correct answer is A.

The circular flow model is a diagram that economists use to visualize have two key group of participants which is households (also known as families or individuals) and firms interact (aka businesses or corporations). This model demonstrates how families supply businesses with labor that aids in producing goods for sale. Families or people who purchase these products from businesses are considered households in return.

The circular flow model, commonly known as the circular flow of  income, merely illustrates how money moves between households and businesses.

For instance, when people buy products from businesses, those businesses pay people—who are the workers—their earnings and salaries. The economy uses a variety of methods to move money around.

Learn more of circular flow at https://brainly.com/question/14061127

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