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Question 1 of 10
Households are an essential part of the circular flow of goods because:
A. businesses rely on households to create new product markets.
B. households are the main source of natural resources in an
economy.
C. households produce services that cannot by supplied by
businesses.
D. businesses could not make a profit without revenue from
households.
SUBMI

Verified Answer :

GinnyAnswer

Final answer:

Households play a crucial role in the circular flow of goods and services by purchasing, providing factors of production, and influencing economic activities.


Explanation:

Households are a vital component of the circular flow of goods and services in an economy. They not only purchase goods and services but also provide essential factors of production like labor and capital to firms, enabling the production process. Households' consumption and savings play a significant role in the economic cycle.


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