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In the circular flow diagram, what is the primary role of households?
What is the direction of the flow of resources in the circular flow diagram?
When labeling a circular flow diagram, what should be indicated by the arrows?
If a household purchases a new car, how is this transaction represented in the circular flow diagram?
How does the flow of money change when firms acquire resources from the market for resources?
How does a household's decision to save money instead of spending it affect the circular flow model?
What is the primary function of firms in the circular flow diagram?
Why is the circular flow diagram significant in understanding economic interactions?
If a person works as a teacher and uses their salary to buy groceries, how is this represented in the circular flow model?
What happens to the flow of money when households increase their spending on services?