The circular flow model- HW

In the circular flow model, what do households provide to firms?

• Public goods
• Goods and services
• Factors of production
• Tax revenues

What do households receive in return for providing labor to firms?

• Goods and services
• Public services
• Wages, rent, and profits
• Tax benefits

Which of the following best describes the role of firms in the circular flow model?

• They provide public goods and services.
• They produce goods and services to meet consumer demand.
• They collect taxes from households.
• They import and export goods.

How does the government influence the circular flow model?

• By providing loans to households
• By collecting taxes and providing public goods
• By regulating prices of goods
• By controlling the foreign sector

If residents work at a local bakery, what do they provide to the bakery?

• Baked goods
• Capital
• Tax revenues
• Labor

How do households contribute to the economy in the circular flow model?

• By providing factors of production
• By exporting goods
• By collecting taxes
• By purchasing goods and services

Which sector is primarily responsible for providing factors of production in the circular flow model?

• Businesses
• Government
• Foreign Sector
• Households

What is the primary role of businesses in the circular flow model?

• To collect taxes
• To consume goods and services
• To provide public goods
• To produce goods and services

How does the government utilize the taxes it collects from households and businesses?

• To increase household income
• To purchase goods from businesses
• To fund public goods and services
• To invest in foreign markets

Which of the following best describes the government's role in the circular flow model?

• To only interact with the foreign sector
• To only regulate businesses
• To collect taxes and provide public services
• To provide goods and services only