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Review of Circular Flow Diagram

Total questions: 27

Worksheet time: 12mins

Name
Class
Date
1.

In terms of resources, what do households provide for businesses?

a)

loans

b)

savings

c)

labor

d)

private goods

2.

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

3.

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

a)

Factor Market

b)

Product Market

c)

Firms

d)

Individuals

4.

In the circular flow model, where do consumers (individuals) go to purchase goods and services?

a)

Product Market

b)

Factor Market

c)

Firms

d)

Individuals

5.
In terms of resources, what do businesses provide for households?
a)
income
b)
sales
c)
taxes
d)
private goods
6.
In the circular flow model, the product market describes _____.
a)

businesses 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
7.
In this market, businesses buy resources they need to produce goods and services.
a)
factor market
b)
stores
c)
product market
d)
 businesses
8.

In the product market, what do businesses provide for consumers according to the circular flow model?

a)
goods and services
b)
only goods
c)
only services
d)
taxes
9.
In the picture, what should replace W?
a)
Factor Market
b)
Product Market
c)
Consumers
d)
Firms
10.
IN the picture, what should replace Z?
a)
Factor Market
b)
Firms
c)
Product Market
d)
Consumers
11.

Which portion of the Circular Flow Model provides labor and purchases goods/services?

a)

Government

b)

Households

c)

Businesses

12.

Who provides resources in the circular flow model?

a)

Factor Market

b)

Product Market

c)

Firms

d)

Individuals

13.
What are the two basic elements of the circular flow model?
a)

Individuals and businesses

b)
Firms and stock markets
c)
Stock markets and banks
d)
Banks and households
14.

What does the Circular Flow Model in economics show?

a)

The flow of goods, services, resources, and money in a market economy.

b)

The relationship between supply and demand in a market.

c)

The impact of government policies on economic growth.

d)

The distribution of wealth among different social classes.

15.

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

a)

Revenue

b)

Wages

c)

Rent

d)

Donation

16.

Do business supply or demand from the product market?

a)

Supply

b)

Demand

c)

Neither

d)

Both

17.

Do individuals supply or demand from the product market?

a)

Supply

b)

Demand

c)

Both

d)

Neither

18.

The outside arrows of the circular flow diagram show the flow of _____________.

a)

goods and services

b)

Factors of production

c)

Money

d)

opportunity cost

19.

The arrows on the inside of the circular flow model show the flow of ___________.

a)

money

b)

resources and goods and services

c)

opportunity cost

d)

marginal benefit

20.

In the factor market, __________ sell factors of production.

a)

girl scouts

b)

the government

c)

businesses

d)

individuals

21.

In the product market, __________ sell goods and services.

a)

girl scouts

b)

the government

c)

businesses

d)

households

22.

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?

a)

Product Market

b)

Factor Market

c)

Firms

d)

Individuals

23.

In this market, businesses buy resources needeed to produce goods and services.

a)
factor market
b)
stores
c)
product market
d)
 businesses
24.
What do businesses provide for consumers according to the circular flow model?
a)
goods and services
b)
only goods
c)
only services
d)
taxes
25.

(a)   is the study of the behavior or individual people, households, and businesses on the economy

Choose from the below words
microeconomics
monopolistic competition
monopoly
normative statement
26.

Select the best answer for a location that goods and services are bought and sold.

a)

command market

b)

microeconomics

c)

market

d)

office building

27.

In this model, what should replace the question mark?

a)

Public Goods and Services

b)

Individuals

c)

Natural Resources

d)

Capital Goods