Circular Flow Model

Front

In a free market economy who owns the resources?

Back

households

Front

In the circular flow diagram firms pay wages for which factor of production?

Back

Labor

Front

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circular flow model?

Back

Product Market

Front

Specialization helps improve productivity because it allows firms to

Back

focus on what they do best

Front

This diagram is called a:

Back

Circular Flow Model

Front

This circular flow model would be for a __________ economy

Back

Free Market

Front

This circular flow model would be for a __________ economy

Back

Mixed Economy

Front

Which statement best explains the roles of businesses and households in the Resource (factor) market?

Back

Households sell resources, while businesses buy resources.

Front

Point B represents

Back

Businesses

Front

What does point A represent on the Circular flow diagram? Options: Households, Businesses, Factor Market, Product Market

Back

Product Market