Circular Flow Model Review

Front

In terms of resources, what do households provide for businesses? (Options: loans, savings, labor, private goods)

Back

labor

Front

In terms of resources, what do businesses provide for households?

Back

income

Front

In the circular flow model, the product market describes _____

Back

stores that sell goods and services to households

Front

In this market, businesses buy resources they need to produce goods and services.

Back

factor market

Front

What do households provide to the resource market?

Back

land, labor, capital, and entrepreneurship

Front

What do businesses provide for consumers according to the circular flow model?

Back

goods and services

Front

What does government provide with the revenue it takes in from taxes?

Back

Public goods and services

Front

In the products market, what do firms do? Options: firms buy goods and services from households, firms sell goods and services to households, firms sell resources to households, firms buy resources from households

Back

firms sell goods and services to households

Front

Which statement is true about the circular flow diagram? A  Households are demanders in the product market and suppliers in the factor market, A  Business are demanders in the product market and suppliers in the factor market., A  Households are demanders in the factor market and suppliers in the product market.,  A  Businesses and households are not components of the circular flow diagram.

Back

A  Households are demanders in the product market and suppliers in the factor market

Front

Place where buyers and sellers meet to exchange goods and services for money

Back

Market