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

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

What does government provide with the revenue it takes in from taxes?

• Headaches

• Public goods and services

• More Congressmen

• Greater control of the media

Place where buyers and sellers meet to exchange goods and services for money

• Market
• Factor of production
• Money
• Interdependent

The missing label in the CFI diagram is...?

• Government Sector

• Financial Sector

• Households

• Firms

This diagram is called a:

• Production Possibilities Curve

• Supply and Demand Curve

• Circular Flow Model

• Circular Motion Equation