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The circular flow model examines interactions between which two groups?

households and firms
households and consumers
firms and producers
firms and government

Respuesta :

Answer: Household and firms.


The circular flow model examines interactions between the household and firms. The graphical representation of the flow of money between two distinct economy is known as Circular flow model. Market for goods and services is an example of this wherein household purchase goods and firms purchase services in exchange for money.

The circular flow model examines interactions between

  • households and firms
  • firms and producers
  • firms and government

The circular flow model examines interactions between which two groups?

Generally, The circular flow model is simply a model that seeks to reveal the relationship that exists amidst two groups of economic dependent factors.

In this case

  • households and firms
  • firms and producers
  • firms and government

For more information on  Household

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