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Refer to the Diagram of the Circular Flow of Income

Question 163

Multiple Choice

Refer to the diagram of the circular flow of income. Based on the diagram, the arrow going FROM box 2 to box 1 must be:
Refer to the diagram of the circular flow of income. Based on the diagram, the arrow going FROM box 2 to box 1 must be:   A) inputs used by businesses. B) spending by households. C) output bought by households. D) earnings by businesses.


A) inputs used by businesses.
B) spending by households.
C) output bought by households.
D) earnings by businesses.

Correct Answer:

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