Households are a necessary part of the circular flow of goods because they:
A. sell resources directly to businesses.
B. provide services that businesses cannot.
C. reduce the influence of resource markets.
D. buy the goods sold at product markets.

Households are essential in the circular flow of goods because they purchase products from businesses, providing necessary revenue. They also supply resources, making them a pivotal force in the economy. Thus, they play a crucial role in maintaining the overall economic flow. ;

Answered by GinnyAnswer | 2025-07-03

Households are crucial in the circular flow of goods because they buy products from businesses, which provides the necessary revenue for the economy. This relationship fosters a continuous economic cycle where consumption drives production. Thus, the correct choice is option D: households buy the goods sold at product markets.
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Answered by Anonymous | 2025-07-04