In the circular flow diagram, what do firms provide to product markets?(1 point)
Responses
revenue
revenue
goods and services
goods and services
money or costs
money or costs
factors of production
goods and services
Firms provide goods and services to product markets in the circular flow diagram.
Firms provide goods and services to the product markets in the circular flow diagram.
To understand this answer, let's break down how to get to the correct response.
1. Start by understanding the circular flow diagram: The circular flow diagram is a simplified representation of how money, goods, and services flow within an economy. It consists of two main sectors: households and firms.
2. Identify the key players in the product market: The product market is where households purchase goods and services from firms. Firms are the suppliers in this market and households are the consumers.
3. Determine what firms provide to the product market: Firms are responsible for producing and supplying goods and services. They offer their products for sale in the product market, where households can purchase them.
4. Match the answer choices with the correct statement: Review the answer choices provided and match them with the understanding of what firms provide in the product market. The correct answer is "goods and services" because it accurately reflects the role of firms in supplying products to the market.
Therefore, the answer is: goods and services.