Economics Unit 2

Goods and services are sold in the ___ market

• Factor 
• Product

When you get a college degree you have increased your 

• product market
• human capital

Resources are sold in the ___ Market

• Product 
• Factor

In the circular flow model, the product market describes _____.

• stores that sell goods and services to households
• the government paying for public goods
• households selling their labor to businesses
• households receive income from businesses

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

• goods and services
• only goods
• only services
• taxes

What do the households provide businesses?

• Labour
• Wages
• Resources
• Goods and services

Amount of extra money charged by Private Financial Institutions (banks, savings & loans, and credit unions) for using their money (loans).  This can be defined as...

• Money
• Income Tax
• Interest Rate
• Financial Captial

Individuals sell __________ to businesses and in return individuals earn an __________.

• profit, income
• resources, products
• resources, income
• profit, individuals

What do households receive in the factor market?

• income
• costs
• expenses
• profits

What do businesses receive in the product market?

• Costs
• Expenses
• Wages
• Revenue