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Circular Flow of Economic Activity

Circular Flow of Economic Activity

Assessment

Flashcard

Social Studies

12th Grade

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

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16 questions

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1.

FLASHCARD QUESTION

Front

The ___________________ is a model economists use to show the relationships in the economy. Businesses and households are the actors in the economy who interact in the resource and product markets.

Back

circular flow diagram

2.

FLASHCARD QUESTION

Front

A simple economy is based on the interaction between two sectors: households and __________.

Back

business

3.

FLASHCARD QUESTION

Front

Businesses employ __________ from the households and purchase resources from the households to produce goods and services.

Back

workers

4.

FLASHCARD QUESTION

Front

Then ____________ purchase goods and services from the businesses with money they earned from selling their resources (including their labor).

Back

Households

5.

FLASHCARD QUESTION

Front

These individual interactions between households and businesses are the basis for _______.

Back

microeconomics

6.

FLASHCARD QUESTION

Front

In a more complex, open economy, the government and foreign economies also interact with both households and businesses. Governments collect revenue through _________ from households and businesses and then use the money to provide public goods and services.

Back

taxes

7.

FLASHCARD QUESTION

Front

The __________ includes households and businesses from around the world who purchase US goods and services (exports) and supply goods and services to US households and businesses (imports).

Back

foreign sector

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