Circular Flow Model

Businesses provide government with...

• taxes

• sales

• private goods & services

• interest

In terms of resources, what do households provide for businesses?

• loans

• savings

• labor

• private goods

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, Businesses

• Factor Market, households, Stock Market, super market

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

• Resource Market

• Product Market

• Firms

• Individuals

Where do factors of production (land, labor, etc) come from in the circular flow model?

• Factor Market

• Product Market

• Firms

• Individuals

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 exchanged between an individual and a store for a good or service.

• Revenue

• Wages

• Rent

• Donation

Do business supply or demand from the product market?

• Supply

• Demand

• Neither

• Both

Do individuals supply or demand from the product market?

• Supply

• Demand

• Both

• Neither

Public sector is

• all businesses and individuals participating in the economic system

• all government programs

• all local businesses

• all corporations