Circular Flow Model Questions

Correctly match the economic resources to the income type

• wages

• capital

• profit

• labor

• rent

• land

• interest

• entrepreneurs

Correctly match the label to the diagram​ ​

a

b

c

d

Factor Market

Product Market

Businesses

Households

Correctly match the label to the diagram

a

b

c

d

e

f

buys goods and services

buys factors of production

sells goods and services

revenue

sells factors of production

income

Correctly match the label to the appropriate place on the diagram

a

b

c

d

e

products

expenditures

leakage

injection

resources

Correctly match the terms below

• owns the factors of production

• Households

• produces goods and services for profit

• Businesses

• exports, loans, & government spending

• Injections

• imports, taxes, and savings

• Leakages

• earned from selling goods and services

• Revenue

The government provides __________ to businesses and households

• factors of production

• goods and services

• public goods

• taxes

• expenditures

Households and businesses __________ to the government in exchange for goods

• pay taxes

• earn income

• earn revenue

• pay expenditures

The yellow arrows in this diagram represent...

• the factor market

• the product market

• factors of production

• goods and services

The purple arrows in this diagram represent...

• the factor market

• the product market

• factors of production

• goods and services

Correctly label the pink and orange boxes

a

b

market for goods and services

goods and services

factors of production

market for resources

income

revenue