Question

1. in the product market, ____ exchange money payments for finished goods and services with ____.

○ households; firms
○ firms; households

Explanation:

In the circular flow of the economy, the product market is where finished goods and services are traded. Households act as buyers, exchanging money for these goods/services, while firms act as sellers, providing the goods/services in exchange for money payments.

Answer:

A. households; firms