Circular Flow Model

What drives the circular flow model?

• success
• profit
• taxes
• monetary policy

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

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

When Wal-Mart pays income taxes, what two parts of the circular flow model are involved?

• consumers and producers
• businesses and government
• consumers and government
• store manager and consumers

Imports are...

• goods and services coming into a country
• goods and services exiting a country
• goods produced in the United States
• goods produced outside of the United States

In this market, businesses buy resources they need to produce goods and services.

• factor market
• stores
• product market
•  businesses

Which of the following is NOT a factor of production?

• land
• labor
• capital
• goods and services

In the circular flow model, households contribute what do the government?

• good and services
• income
• taxes
• products

In the circular flow model, financial institutions are included with the...

• government
• resource market
• product market
• firms 

What do households provide to the resource market?

• land, labor, capital 
• money
• people
• income

What three entities make up the circular flow model?

• firms, households, and the government
• Buyers, sellers, producers
• Local, state, and federal government
• President Obama, Mark Warner, Al Gore