The Circular Flow Matrix

Which of the following is NOT part of the product market?

• chair

• movie

• chicken nuggets

• workers

Who owns the resources in the Circular Flow Matrix in a free market?

• businesses

• households

• government

Identify which items below are correctly matched.

• Labor sold by households = Resource Market

• Labor sold by households = Product Market

• Computers sold by businesses = Product Market

• Computers bought by households = Product Market

TRUE or FALSE: A store can be in both the Resource Market and the Product Market.

• True

• False

In the public sector, which group "runs" the economy?

• businesses

• households

• government

Businesses provide government with...

• taxes
• sales
• private goods & services
• interest

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

• loans
• savings
• labor
• private goods

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

• private goods
• public goods
• sales
• income

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

• income
• sales
• taxes
• private goods

The Circular Flow model proves that the sectors of the economy are...

• independent
• dependent
• interdependent
• round