CE.12 Circular Flow Basics

Businesses provide government with...

• taxes

• sales

• private goods & services

• interest

What do governments provide?

• private goods & services

• public goods & services

What resource do households provide for businesses?

• loans

• savings

• labor

• private goods

What products do businesses provide for households?

• private goods

• public goods

What do businesses provide for households?

• income

• sales

• taxes

How do households give money to businesses?

• sales

• taxes

• savings

Money exchanged between businesses and individuals for labor.

• wages

• revenue

• spending

• profit

Government use taxes to produce

• Leaders for the government

• Weapons for the military

• Public Goods and Services

• Television Commercials

Who pays the government taxes?

• Workers (labor)

• Homeowners/business owners (land)

• Consumers (you)

• All of the above

Which of the following is a worker?

• Land

• Labor

• Capital

• Entrepreneurship