Circular Flow

Front

Goods and services are sold in the ___ market

Back

Product

Front

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

Back

goods and services

Front

In the circular flow model, the product market describes

Back

stores that sell goods and services to households

Front

The circular flow model of a market economy shows

Back

the interactions between households and  businesses in the free market

Front

Which arrows on this diagram represent the transaction between Joe who rents his office to Homework Inc., a company that provides tutoring services?

Back

4,7

Front

Arrows 1 and 5 on this circular flow diagram demonstrate

Back

goods and services flow

Front

Which statement is true about the circular flow diagram?

Back

Households are demanders (buy) in the product market and suppliers (sell) in the factor market.

Front

The arrows 1 to 2 in this diagram represent which aspect of the economy?

Back

money flow

Front

In the circular flow model, what do individuals sell to the factor market?

Back

Resources

Front

In the products market, what do businesses do?

Back

businesses sell goods and services to households