Econ Review pt2

What is being represented by the "green flow lines"

• Flow of Money
• Flow of Goods and Services
• law

What is being represented by the "red flow line"

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

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

What do the households provide businesses?

• Labour
• 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

Look at the picture.  What should replace Y?

• Consumers
• Firms
• Factors
• Revenue

In which market do consumers purchase goods and services?

• Factor 
• Product
• Households
• none of the above

"Consumers purchase products in the Product Market".  What represents "consumers"?

• Households
• Businesses/Firms
• Income
• REsource

Why do firms need to purchase the productive resources in the factor market?

• To produce labor
• To produce goods and services
• To increase demand
• None of the above