Free Enterprise

What do the households provide businesses?

• Labour
• Wages
• Resources
• Goods and services

In the products market

• firms buy goods and services from households
• firms sell goods and services to households
• firms sell resources to households
• firms buy resources from households

The government main source of funds

• bonds
• government charges
• transfer payments
• net taxes

Goods and services are sold in the ___ market

• Factor 
• Product

What is being represented by the "green flow lines"

• Flow of Money
• Flow of Goods and Services

What is being represented by the "red flow line"

• The flow of money
• The flow of goods and services

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

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

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

The circular flow model of a market economy shows

• how profits are made
• what inputs are required for what outputs
• how many firms can support the needs of how many households
• the interactions between households and  firms in the free market

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

• 2,3
• 4,7
• 1,2
• 5,6