According to the circular flow model, which of the following is not provided by

consumers?

O

A. Labor

O

B. Capital

C. Wages

O

D. Land

Wages is not provided by consumers.

C. Wages

Explanation:

According to the circular flow model, wages are not provided my consumers. The consumers pay for what he/she buys and it is the role of the businessman to pay wages. The circular flow model revolves around households, firms and the government, the flow from households and firms to the government are in the form of taxes.

The circular flow model can be explained in two cycles, one where goods and services flows from individuals and business and vice versa and the other money flowing from business to households and vice versa. Both the cycles are important for the economy to work properly.

We buy things and we pay for them and get money when we get things done. This is the Circular Flow model and it is hence evident that in this model the wages are not provided by the consumers.