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Throughout the product market, factor market, and financial market in the circular flow diagram, households and businesses interact. only the I, III, and IV are the best choice
Taxes are paid directly to the government by households in the circular flow diagram.
In a circular flow model, what is the product market?
Two different markets are illustrated in the circular flow diagram. The product market comes first. A commodity market is a venue where products and services are traded for cash. Households (consumers) are the primary consumers in the market industry while enterprises are the distributors.
What are the circular flow diagram's four primary components?
The structure of a straightforward economic model is depicted by the circular flow diagram. The marketplaces for the factors of production, individuals, businesses, and marketplaces for items and services are all included in this.
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