Lesson 9 Review: Circular Flow of the Economy

What is the circular flow ?

• The circular flow is a model that shows how money flows in a straight line through the economy.
• The circular flow is a model that shows how goods and services flow in a linear manner through the economy.
• The circular flow is a model that shows how money, goods, and services flow in a zigzag pattern through the economy.
• The circular flow is a model that shows how money, goods, and services flow through the economy.

Where can products be sold in a market economy?

• Products can only be sold through government-owned stores.
• Products can be sold in a market economy through various channels such as retail stores, online platforms, direct sales, auctions, and through intermediaries like wholesalers and distributors.
• Products can only be sold through bartering.
• Products can only be sold through direct sales.

What are the four categories of resources in the circular flow matrix?

• land, labor, capital, and entrepreneurship
• income, expenditure, savings, and investment
• money, goods, services, and technology
• supply, demand, equilibrium, and elasticity

What happens when you buy a product in the product market?

• You exchange the product for money.
• You exchange the product for another product.
• You receive the product for free.
• You exchange money for the product.

What are the four types of factor payments in the circular flow matrix?

• salary, lease, dividend, and loss
• income, fee, investment, and revenue
• earnings, mortgage, capital, and gain
• wages, rent, interest, and profit

Is the local mall an example of the product market or the resource market?

• labor market
• resource market
• financial market
• product market

Do businesses demand or supply in the circular flow matrix?

• demand
• both demand and supply
• neither demand nor supply
• supply

What role does the government play in the circular flow matrix?

• The government plays multiple roles in the circular flow matrix.
• The government is responsible for creating the circular flow matrix.
• The government only plays a minor role in the circular flow matrix.
• The government has no role in the circular flow matrix.