Microeconomics Circular Flow Diagram

The delivery of finished products for sale in exchange for revenue is represented in which arrows?

• 5 and 6

• 3 and 4

• 4 and 5

• 7 and 8

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?

• Households

• Factor market

• Product market

• Firms

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?

• Households

• Factor Market

• Firms

• Product Market

Where does the exchange of the 4 factors of production take place?

• The product market

• The resource market

• The factor market

• Firms

What model shows how products, resources, and money flow in the economy?

• Circular flow model

• aggregate model

• GDP output expenditure model

• the Cobb-Douglas production function

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

• Product Market

• Factor Market

• Resource Market

• None of the above

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 do businesses provide for consumers according to the circular flow model?

• goods and services

• only goods

• only services

• taxes

What is being represented by the "red flow line"

• The flow of money

• The flow of goods and services

• Taxes

• Productive resources