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What is the purpose of the "circular flow model of a market economy?"

A. It shows how the government interacts with households and firms in the marketplace.

B. It shows the alternative ways to use a country's productive resources.

C. It shows how households and firms exchange money, resources, and products in the marketplace.

D. It shows the number of good demanded by consumers.

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Answer:

C. It shows how households and firms exchange money, resources, and products in the marketplace.

Explanation:

the diagram of circular flow, shows the graphical representation of the exchange of goods, services and money between households and companies, where both parties interact in a reciprocal manner in terms of what they offer and receive. in order to generate the flow of the economy.

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