AP Macroeconomics Unit 2 Flashcard

Front

What is being represented by the "green flow lines"?

Back

Flow of Money

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

The circular flow model of a market economy shows: how profits are made, what inputs are required for what outputs, how many firms can support the needs of how many households, the interactions between households and firms in the free market.

Back

the interactions between households and firms in the free market

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 circular flow model, consumption goods are bought and sold in the

Back

product market

Front

The circular flow model shows the

Back

flow of expenditure and incomes that arise from the households' and business' decisions.

Front

Is this counted in the GDP of the US? Cars made by a Japanese company in California.

Back

Yes

Front

Is this counted in the GDP of the US? Cars made by a US company in South Korea.

Back

No