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Which statement best illustrates the relationship between three different elements of the circular flow of products?

A. Households design new products for businesses, which market them using resource markets.
B. Resource markets sell materials to businesses, which use them to make goods sold to households.
C. Businesses provide goods to resource markets, which sell them directly to households.
D. Product markets create new goods for households, which purchase them directly from businesses.



Answer :

GinnyAnswer

Final answer:

The best illustration of the relationship between three elements in the circular flow of products is Option B: Resource markets sell materials to businesses, which use them to make goods sold to households.


Explanation:

The relationship between three different elements in the circular flow of products can be best illustrated as:

  • Option B: Resource markets sell materials to businesses, which use them to make goods sold to households.

In the circular flow model, households provide resources to businesses in the form of labor and materials, and businesses use these resources to produce goods and services, which are then sold back to households in the product market.


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