Which statement best describes the circular flow of an economy?

the flow between businesses and resources

the exchange of money, goods, and services in an economy

a circular flow happens only in a resource market

a circular flow happens only in a goods and services market

Answer:

C

Explanation:

The statement "the exchange of money, goods & services in an economy" should represent the best description of the economy's circular flow.

According to the economic perspective, circular flow refers to the money flow and the resources i.e. goods and services lies between the people in which there is an exchange of resources that could be done in return for the money.

It involved two types of market i.e. factors and goods and in these two markets,  the resources should be provided in order to receive the monetary value.

The following statements represent the circular flow of an economy:

Therefore we can conclude that the statement "the exchange of money, goods & services in an economy" should represent the best description of the economy's circular flow.

Learn more about the circular flow of the economy here: brainly.com/question/11324259

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Yes
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