Which of the following best explains why the free-market system follows a circular flow model?

A. The free choices made by consumers and producers influence each other.

B. Goods and services are constantly recycled in a circular manner.

C. The allocation of resources affects both production and distribution.

D. Profits flow in a circular way back and forth between consumers and producers.

Question

Social Studies

Major

10 September, 23:20

Which of the following best explains why the free-market system follows a circular flow model?

A. The free choices made by consumers and producers influence each other.

B. Goods and services are constantly recycled in a circular manner.

C. The allocation of resources affects both production and distribution.

D. Profits flow in a circular way back and forth between consumers and producers.

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Answers (1)

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Lilliana Hester · Answer 1

A. the free choices made by consumers and producers influence each other

(supply and demand) customers want x, y, and z, so producers create x, y, and z, and so on.