Circular Flow Review

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 earned by a firm when there is an exchange between an individual and a store for a good or service.

• Revenue

• Wages

• Rent

• Donation

What are the four main parts of the circular flow diagram?

• Product Market, Stock Market, Factor Market, Fish Market

• Product Market, House Market, Factor Market, Good Market

• Factor Market, Product Market, Households, Firms

• Factor Market, households, Stock Market, super market

What do businesses provide for consumers according to the circular flow model?

• goods and services
• only goods
• only services
• taxes

What do households provide to the resource market?

• land, labor, capital 
• money
• people
• income

In the circular flow model, the product market describes _____.

• firms that sell goods and services to households

• the government paying for public goods
• households selling their labor to businesses
• households receive income from businesses

The exchange of money for goods/services to consumers is represented in which part of the circular flow diagram?

• 1 and 2

• 3 and 4

• 5 and 6

• 7 and 8

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

In the circular flow model, what do individuals SELL to businesses

• Services

• Money

• Resources

• Goods