Circular Flow Model Questions

Correctly match the economic resources to the income type

• profit

• land

• interest

• entrepreneurs

• rent

• capital

• wages

• labor

Correctly match the label to the diagram​ ​

a

b

c

d

Product Market

Households

Businesses

Factor Market

Correctly match the label to the diagram

a

b

c

d

e

f

buys goods and services

sells goods and services

sells factors of production

revenue

buys factors of production

income

Correctly match the label to the appropriate place on the diagram

a

b

c

d

e

resources

products

leakage

injection

expenditures

Correctly match the terms below

• produces goods and services for profit

• Businesses

• exports, loans, & government spending

• Injections

• owns the factors of production

• Leakages

• earned from selling goods and services

• Revenue

• imports, taxes, and savings

• Households

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 resources

market for goods and services

income

revenue

factors of production

goods and services