17.2_The American Economy_Economic Flow and Economic Growth

Which of the following is sold in the factor market?

• pants sold to a grocery store owner

• a computer sold to a student

• tools sold to a home owner

• the labor of a farmer

Consumers participate in the factor market and in the product market.

• True

• False

The business sector participates only in the factor market.

• True

• False

Money flows to the business sector through the ________.

• factor market

• consumer sector

• product market

• factors of production

Factories are the link between consumers and businesses.

• True

• False

Which sector represents companies that produce goods and services?

• the product sector

• the business sector

• the foreign sector

• the government sector

The government can act as a consumer in the product market.

• True

• False

The foreign sector ____________________.

• does not participate in the product market

• does not participate in the factor market

• participates in both the product and the factor market

• participates in neither the product nor the factor market

When the GDP goes up, the _____________________.

• country is experiencing economic growth

• country is experiencing economic loss

• standard of living goes down

• standard of living stays the same

Human capital can be improved if workers gain ________.

• higher wages and better health care

• New machines and better materials

• education, training, and experience

• higher quality factors of production