Circular Flow

What model shows how products, resources, and money flow in the economy?

• Circular flow model

• aggregate model

• GDP output expenditure model

• the Cobb-Douglas production function

In what market do businesses sell goods and services to households?

• Product Market

• Factor Market

• Resource Market

• None of the above

In what market are the factors of production bought and sold?

• Product Market

• Resource Market (AKA- Factor Market)

In a free market economy who owns the resources?

• state governments

• the federal government

• households

• local governments

Which of the following is an INCORRECT association of the factor payments?

• land-rent

• labor- wages

• capital- interest

• entrepreneur- profit

• All are correct associations of the factor payments

True or False- Businesses demand in the resource market and supply in the product market

• True

• False

The part of the economy ran by the government is called the....

• private sector

• public sector