Circular flow/Market Structures

In what market do businesses sell goods and services to households?

• Product Market

• Resource Market

• Factor Market

In what market are the factors of production bought and sold?

• Product Market

• Factor/Resource Market

True or False- Businesses demand in the resource market and supply in the product market

• True

• False

In the circular flow diagram firms pay wages for which factor of production?

• Land

• Labor

• Entrepreneurship

• Raw Materials

A person stocks shelves at a grocery store and receives a wage. They have completed an exchange in which part of the circular flow model?

• Individuals

• Business

• Factor Market

• Product Market

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

Goods and services are sold in the ___ market

• Factor market

• Product Market

Governments provide businesses with public goods and in return businesses give____________ to the government.

• Goods/Services

• Labor

• Money

• Taxes

How many firms are there in a perfect competition?

• 1

• 2-5

• many

How many firms are there in a monopoly?

• 1

• 2-5

• many