Economics: Circular Flow

Point B represents

• Product Market

• Factor Market

• Individuals

• Businesses

What does point A represent on the Circular flow diagram?

• Households

• Businesses

• Factor Market

• Product Market

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

• Factor Market

• Product Market

• Firms

• Individuals

What does point C represent on the Circular Flow diagram?

• Firm

• Factor Market

• Individual

• Product Market

A person stocks shelves at a grocery store and receives a wage. They have completed an exchange in which part of the circular flow model?

• Individuals

• Businesss

• Factor Market

• Product Market

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

Money exchanged between businesses and individuals for labor.

• wages

• revenue

• spending

• profit

Money exchanged between an individual and a store for a good or service.

• Revenue

• Wages

• Rent

• Donation

What is being represented by the "red flow line"

• The flow of money
• The flow of goods and services
• Taxes
• Productive resources

In the circular flow model, what do individuals sell to the factor market

• Services
• Money
• Productive Resources
• goods