CFD & Market Structure Practice

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

• 1 and 2

• 3 and 4

• 5 and 6

• 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?

• Individuals

• Businesss

• 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

Money exchanged between businesses and individuals for labor.

• wages

• revenue

• spending

• profit

Money exchanged between an individual and a store for a good or service.

• Revenue

• Wages

• Rent

• Donation

The exchange of money for goods/services to consumers is represented in which part of the circular flow diagram?

• 1 and 2

• 3 and 4

• 5 and 6

• 7 and 8

What does point A represent on the Circular flow diagram?

• Households

• Businesses

• Factor Market

• Product Market

In the circular flow model, what do individuals SELL to businesses

• Services

• Money

• Resources

• Goods

Annie owns a large amount of land in the country. Spiffco decides to build a large factory on that property, and pay Annie rent for the use of the land. Annie represents which sector of the Circular Flow Model?

• Households

• Firms

• Product Market

• Goods and Services

Choices often have to be made because productive resources are limited while wants and needs are limited. This situation is known as

• scarcity
• surplus
• budgeting
• borrowing