The circular flow model examines interactions between which two groups? a. households and firms * b. households and consumers c. firms and producers d. firms and government

The correct answer is A) Households and firms.

The circular flow model is a visual used in economics to understand the relationships between households (aka families/individuals) and firms (aka businesses or corporations). This model shows how households provide firms with labor that helps to generate products to sell. In return, households are the families or individuals who buy these goods from firms.