If Lacy Buys a Smoothie at the Corner Store, Which

Multiple Choice

If Lacy buys a smoothie at the corner store, which of the following best relates this transaction to the circular flow model?

A) Goods flow from firms and money flows from households through the product markets.
B) Resources (land, labor, or capital) flows from households, and money flows from business in the product markets.
C) Income flows from the factor markets, and goods flow into the factor markets.
D) Resources flow into households, and back into the goods and services markets.