Answer:
Option D. The following statement about the circular flow model is correct:
Households earn income from the factor market and businesses earn revenue from the product market.
Explanation:
The circular flow model is an economic model that depicts the way money flows through the economy, mainly between households and businesses. The businesses receive income from the product market which is were consumers spend their money when they need a product or service. Households, on their hand, earn income from the factor or resource market, which is where the businesses goes to when they need to buy resources to keep their businesses floating, these resources are in the form of paying workers or renting physical spaces.
