Circular Flow Model

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Circular Flow Model

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​Watch Economic Lowdown for a basic explanation of the circular flow model

Multiple Choice

Point B represents

• Product Market

• Factor Market

• Individuals

• Businesses

Multiple Choice

What are the four main parts of the circular flow diagram?

• Product Market, Stock Market, Factor Market, Fish Market

• Product Market, House Market, Factor Market, Good Market

• Factor Market, Product Market, Households, Firms

• Factor Market, households, Stock Market, super market

Multiple Choice

What does point A represent on the Circular flow diagram?

• Households

• Businesses

• Factor Market

• Product Market

Multiple Choice

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

• Factor Market

• Product Market

• Firms

• Individuals

Multiple Choice

Where do factors of production (land, labor, etc) come from in the circular flow model?

• Factor Market

• Product Market

• Firms

• Individuals

Multiple Choice

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

• Land

• Labor

• Entrepreneurship

• Raw materials

Multiple Choice

The exchange of money for goods/services to consumers is represented in which part of the circular flow diagram?

• 1 and 2

• 3 and 4

• 5 and 6

• 7 and 8

Multiple Choice

The delivery of finished products for sale in exchange for revenue is represented in which arrows?

• 1 and 2

• 3 and 4

• 5 and 6

• 7 and 8

Multiple Choice

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

• Product Market

• Factor Market

• Firms

• Individuals

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