the diagram illustrates the circular flow of resources. which of the following transactions would take place…

the diagram illustrates the circular flow of resources. which of the following transactions would take place in the resource market?\n\na) janet buys lemonade from neighborhood children.\n\nb) alex gets a loan to buy a new car.\n\nc) shania eats lunch at a restaurant.\n\nd) paul pays tuition at a private school.\n\ne) a software company pays andrew to audit its purchasing records.

the diagram illustrates the circular flow of resources. which of the following transactions would take place in the resource market?\n\na) janet buys lemonade from neighborhood children.\n\nb) alex gets a loan to buy a new car.\n\nc) shania eats lunch at a restaurant.\n\nd) paul pays tuition at a private school.\n\ne) a software company pays andrew to audit its purchasing records.

Answer

Brief Explanations:

In the resource market, households sell resources (like labor) and businesses buy them. Option E involves a software company (business) paying Andrew (household - providing labor in form of auditing) which is a transaction in the resource market. Options A, C, and D are transactions in the product market where households buy goods or services. Option B is a financial transaction not related to the resource - product market flow shown.

Answer:

E. A software company pays Andrew to audit its purchasing records.