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Circular Flow and Currency Review

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

Which of the following are examples of goods as opposed to services?

a)

  tees, golf lesson, golf shoes

b)

  tennis lesson, golf lesson, hair cut

c)

  tees, golf shoes, tennis racket

d)

  tennis lesson, golf lesson, tennis racket

2.

What does #3 represent?

(drawing on board)

a)

government

b)

business

c)

individual

d)

resource market

3.

Entrepreneurs are primarily motivated by __________

a)

rent

b)

wages

c)

interest

d)

profit

4.

In the circular flow model households sell labor to firms in exchange for 

a)

rent

b)

wages

c)

interest

d)

profit

5.

In the Circular Flow, what flows from the government to households and businesses?

a)

rent

b)

wages

c)

taxes

d)

public service

6.

What do numbers 7, 8, 9, and 10 represent?

(picture on board)

a)

  Wages, rent, dividends and profit

b)

  Land, labor, capital, and entrepreneurship

c)

goods and services

d)

  Fire and police departments, infrastructure and public services

7.

The Circular Flow of the Economy ___________________

a)

  Demonstrates how money moves through the government.

b)

  Demonstrates how money moves through the factor market

c)

  Demonstrates how money moves through the household market

d)

  Demonstrates how money moves through the economy.

8.

Goods and services are exchanged in the _____________

a)

  Product market

b)

  Factor market

c)

  Resource market

d)

free market

9.

In a market economy, resources are owned by households.  Individuals in households take their resources to the __________

a)

  Product market

b)

  Goods and Services market

c)

  Factor market

d)

  None of the above

10.

Land, labor, capital and entrepreneurship are _________

a)

  Natural resources

b)

  Government production

c)

  Public production

d)

  Factors of production

11.

Zach has a landscaping business. Some of his profit will be used in procuring capital for the business. ​ ​ ​ ​​ ​ (a)  

a)

true

b)

false

12.

Consumers vote with their money and tell businesses what to produce.  What is this called? ​ (a)  

a)

Consumer Sovereignty

b)

Circular Flow

c)

Economic Sovereignty

d)

Government Sovereignty

13.

What happens when members of households go to the factor market and do not have skills that anyone wants to pay for?

a)

  A recession occurs

b)

  Unemployment occurs

c)

  Full employment occurs

d)

  Production occurs

14.

Identify numbers 11, 12, 13 and 14. 

(picture on board)

a)

  Land, labor, resources and entrepreneurship

b)

  Land, products, capital and entrepreneurship

c)

  Land, labor, capital and entrepreneurship

d)

  Land, labor, capital and government

15.

Match the following

a)

Public Service

1.

Police

b)

Factor of Production

2.

Labor

c)

Good

3.

car

d)

Service

4.

waitress

16.

What does the top arrow, #4 represent?

(picture on board)

a)

Wages

b)

  Products and services

c)

  Goods and services

d)

  Consumer spending

17.

What do numbers 1 and 2 represent?

(picture on board)

a)

Households and Business

b)

Goods and Service

c)

Government and Busines

d)

Households and Governement

18.

What act allowed us to print representative money for the gold in the US treasury?

a)

  The US coin act of 1723

b)

  The Treasury Bill of 2022

c)

  The Dollar Act of 1850

d)

  The Gold Standard Act of 1900

19.

___________ money is when the declare the currency "legal tender" by the government

a)

representative

b)

fiat

c)

digital

d)

commodity

20.

What is the optimum level of inflation a country should experience?

a)

above 50%

b)

0%

c)

1 - 3%

d)

10%