WorksheetsHow does it flow?
Total questions: 11
Worksheet time: 6mins
In the Circular Flow diagram, the outer set of arrows represents the flow of:
Dollars
Inputs and outputs
Goods and services
Factors of production
In the Circular Flow diagram, the inner set of arrows represents the flow of:
Dollars
Inputs and outputs
Goods and services
Factors of production
In the market for factors of production, _______ own and sell land, labour, and capital (factors of production!)
Firms
Households
Neither, as factors of production are common resources
_____ are the sellers in the Market for Goods & Services, and the buyers in the Market for Factors of Production
Firms
Households
Governments
A firm's revenue comes from _____ by households on goods and services.
Saving
Spending
Selling
In exchange for their factors of production, firms pay households in the form of ______
Rent, bonds, and wages
Wages, capital gains, and rent
Rent, worker's compensation, and bonds
Wages, rent and profit
Which statement is correct about factors of production?
Firms use these as inputs to create goods and services
Households sell these to firms, in exchange for wages, rent, and profit
Factors of production include land, labour and capital
All of the above are correct!
Bonus: Which of the following statements is true of economic models?
They are built with assumtions
They are useless if they are simple
They are created to duplicate reality
They are usually made of wood and plastic
Bonus: Which of the following statements about micro and macro economics is NOT true?
Microeconomics is a building block for macroeconomics
Macroeconomics is concerned with economy-wide phenomena
Microeconomics and macroeconomics each have their own set of models
The study of very large industries is a topic within macroeconomics
Bonus: Which of the following statements is normative?
Printing too much money causes inflation
People work harder if the wage is higher
The unemployment rate should be lower
Large government deficits cause an economy to grow more slowly
Bonus: Which of the following is a positive statement?
The government should print more money to lower unemployment
It is important that our society prioritizes equity over efficiency
According to Keynesian theory, we need to "save" capitalism from itself
Firms should work harder to ensure corporate social responsibility.
