Unit #2 Standard #1

What is being represented by the "green flow lines"

• Flow of Money

• Flow of Goods and Services

• law

In the circular flow model, what do individuals SELL to businesses

• Services

• Money

• Resources

• D Goods

In the United States economy, what do businesses buy from consumers?

• Resources

• Interest

• goods

• 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

What do the households provide businesses?

• Labor

• Wages

• Resources

• Goods and services

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

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 households sell?

• Products

• Goods & Services

• Factors of Production

• Expenditures

What do businesses sell?

• Resources

• Factors of Production

• Capital

• Goods & Services