Circular Flow Model Review

Businesses provide government with...

• taxes
• sales
• private goods & services
• interest

What do governments provide for the market?

• private goods & services
• public goods & services

In terms of resources, what do households provide for businesses?

• loans
• savings
• labor
• private goods

In terms of resources, what do businesses provide for households?

• income
• sales
• taxes
• private goods

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

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

• factor market
• stores
• product market
•  businesses

What do households provide to the resource market?

• land, labor, capital, and entrepreneurship

• money

• people

• income

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

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

IN the picture, what should replace Z?

• Factor Market
• Firms
• Product Market
• Consumers

In the picture, what should replace W?

• Factor Market
• Product Market
• Consumers
• Firms