Question

quiz
question 1 of 1
the ______ flow of the economy shows how economic activity flows between households and businesses.
circular
upward
straight
backward

Explanation:

In economics, the circular - flow model shows the flow of economic activity between households and businesses. Households provide factors of production to businesses and in return receive goods and services. Businesses use factors of production to produce goods and services and sell them to households.

Answer:

A. circular