Markets & The Circular Flow

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

• loans
• savings
• labor
• private goods

T/F: Markets tend to circulate resources, goods, & money through the four sectors of the economy continuously.

• True
• False

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

• Factor Market

• Product Market

• Firms

• Individuals

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?

• Product Market

• Factor Market

• Firms

• Individuals

A farmer's market is an example of

• a local market

• a cyber market

• a problem

• a stock market

Anything that brings buyers and sellers together is referred to as a...

• good

• market

• service

• shortage

An example of a cyber market is...

• Farmer's Market

• Swap Meet

• eBay

• Economy

Do households need business or do businesses need households?

• Businesses need households

• Households needs businesses

• The do not need each other at all, they're completely independent

• They need each other

When you are woking and earning money, you are part of the...

• Factor Market

• Product Market

• Paradox of Value

• Shortage

True or false: A yard sale is considered a market

• True

• False