Circular Flow Model Flashcard

Front

Businesses provide government with...

Back

taxes

Front

What do governments provide for the market?

Back

public goods & services

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/factor 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

In the picture, what should replace Z? (Options: Factor Market, Firms, Product Market, Consumers)

Back

Product Market

Front

In the picture, what should replace W? Options: Factor Market, Product Market, Consumers, Firms

Back

Factor Market