Question

pregunta 9 (5 puntos)
in the circular flow model (circular flowchart), what 2 groups are interacting?
a government and citizens
b households and businesses
c households and governmet
d government and businesses

pregunta 10 (5 puntos)
when both parties in a transaction believe what they are getting is greater than what they are giving up, that is called .
a consumer sovereignty
b voluntary exchange
c consumerism
d competition

Explanation:

Pregunta 9

The Circular Flow Model (in its basic form) primarily shows the interaction between households (which supply resources like labor) and businesses (which demand resources and supply goods/services). Option a is incorrect as the basic model focuses on households and businesses, not government and citizens. Option c has a spelling error ("governmet") and is incorrect. Option d is incorrect as the core interaction in the basic model is between households and businesses.

Voluntary exchange is when both parties in a transaction believe the value they receive is more than what they give up, as they enter the exchange willingly. Consumer sovereignty refers to consumers' control over what is produced. Consumerism is a social and economic order emphasizing consumer demand. Competition is about firms vying for customers. So the correct term is voluntary exchange.

Answer:

b. households and businesses

Pregunta 10