Circular Flow Formative A

The income for a Household comes from a

• Household

• growing on a tree

• business (firm)

• spending money on goods and services

Money ​ (a)   by households becomes ​ (b)   for businesses. Businesses then pay ​ (c)   that becomes ​ (d)   ​ for households.

• spent
• revenue
• wages
• income

Households provide ​ (a)   to businesses in return for ​ (b)   .

• human labor
• wages
• the joy of working for nothing
• scarcity

Goods flow from ​ (a)   to ​ (b)   through the ​ (c)   .

• Businesses
• Households
• Product Market
• Resource Market

Drag the concepts to the correct location.

d

e

f

c

b

a

Product Market

Resource Market

←Goods and Services

Businesses

Households

Monetary Flow→

Goods and services are sold in the ​ (a)   .

• Product Market
• Resource Market
• Households

Where is human labor traded for wages or salary?

• Resource Market

• Product Market

• Somewhere on the diagram

• Traditional Economy because we hunt for food every night.