WorksheetsCircular Flow Model
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Businesses provide government with...
a)
taxes
b)
sales
c)
private goods & services
d)
interest
2.
What do governments provide for the market?
a)
private goods & services
b)
public goods & services
3.
In terms of resources, what do households provide for businesses?
a)
loans
b)
savings
c)
labor
d)
private goods
4.
In terms of products, what do businesses provide for households?
a)
private goods
b)
public goods
c)
sales
d)
income
5.
In terms of products, what do businesses provide for households?
a)
private goods
b)
public goods
c)
sales
d)
income
6.
In terms of resources, what do businesses provide for households?
a)
income
b)
sales
c)
taxes
d)
private goods
7.
In terms of products, what do households provide for businesses?
a)
sales
b)
taxes
c)
private goods
d)
savings
8.
What do banks provide for households & businesses?
a)
interest payments
b)
savings
c)
sales
d)
public services
9.
What do businesses & households provide for banks?
a)
savings
b)
loans
c)
mortgages
d)
private services
10.
T/F: Markets tend to circulate resources, goods, & money through the four sectors of the economy continuously.
a)
True
b)
False
11.
The Circular Flow model proves that the sectors of the economy are...
a)
independent
b)
dependent
c)
interdependent
d)
round
12.
In the products market
a)
firms buy goods and services from households
b)
firms sell goods and services to households
c)
firms sell resources to households
d)
firms buy resources from households
13.
Goods and services are sold in the ___ market
a)
Factor
b)
Product
14.
Resources are sold in the ___ Market
a)
Product
b)
Factor
15.
What is being represented by the "green flow lines"
a)
Flow of Money
b)
Flow of Goods and Services
16.
What is being represented by the "red flow line"
a)
The flow of money
b)
The flow of goods and services
17.
In the circular flow model, the product market describes _____.
a)
stores that sell goods and services to households
b)
the government paying for public goods
c)
households selling their labor to businesses
d)
households receive income from businesses
18.
Most American households receive income from selling which resource?
a)
Land
b)
Labor
c)
Capital
d)
Entrepreneurship
19.
In the circular flow model, what do individuals SELL to businesses
a)
Services
b)
Money
c)
Resources
d)
D Goods
20.
What are the four main parts of the circular flow diagram?
a)
Product Market, Stock Market, Factor Market, Fish Market
b)
Product Market, House Market, Factor Market, Good Market
c)
Factor Market, Product Market, Households, Businesses
d)
Factor Market, households, Stock Market, super market
100 %
