WorksheetsEcon: Ch.3 Circular Flow
Total questions: 10
Worksheet time: 9mins
Name
Class
Date
1.
A market is an arrangement that brings together
a)
the factors of production and households.
b)
different groups of businesses and industries.
c)
buyers and sellers.
d)
buyers and households.
2.
Within the circular flow, there are two markets. These markets are the
a)
market for firms to sell goods and the market for firms to sell services.
b)
goods market and the factor market.
c)
market for households to buy goods and the market for households to buy services.
d)
market for the government and the market for everyone else.
3.
In the circular flow model, which of the following is on the selling side in the product market?
a)
government
b)
only households
c)
only businesses
d)
both businesses and households
4.
In the circular flow model, consumption goods are bought and sold in the
a)
product market
b)
financial market
c)
resource market
d)
government market
5.
The circular flow model shows that goods and services flow from
a)
businesses to households.
b)
households to business.
c)
the resource market to businesses.
d)
the product market to businesses.
6.
In the circular flow model, which of the following owns the factors of production?
a)
government
b)
only households
c)
only businesses
d)
both businesses and households
7.
In the circular flow model, which of the following is on the buying side of the resource markets?
a)
government
b)
only households
c)
only financial institutions
d)
only businesses
8.
In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production?
a)
finished goods and services
b)
wages, rent, interest, and profit
c)
transfer payments from government
d)
firm's profit incentives
9.
The circular flow model shows the
a)
distribution of income and consumption goods across income levels.
b)
combinations of the factors of production needed to produce goods and services.
c)
flow of expenditure and incomes that arise from the households' and business' decisions.
d)
distribution of income to the different factors of production.
10.
The circular flow model demonstrates that the decision by households not to purchase as many new cars this year is signaled in the
a)
resource market and not the product market.
b)
capital market.
c)
product market and not the resource market.
d)
product market and the resource market.
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