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WorksheetsUnit 3 Quiz 1 The Circular Flow
Total questions: 10
Worksheet time: 5mins
Use the diagram to answer the question.
Workers decide to go on strike to protest working conditions. Based on the diagram, what would be the MOST immediate impact of this decision?
The business would have less access to factors
of production.
Households would experience an increase in
wages and incomes.
The business would see an increase in demand
for goods and services.
Households would have more access to goods
and services.
Use the circular flow diagram to answer the question.
How do goods and services flow between households and businesses?
from households to businesses through the
product market
from businesses to households through the
product market
from households to businesses through the
resource market
from businesses to households through the
resource market
Use the circular flow diagram to answer the question.
What flows from businesses to households through the resource market?
labor
revenue
income
expenditures
Use the circular flow diagram to answer the question.
Which element flows from households to businesses through the product market?
labor
income
interest
revenue
Use the circular flow diagram to answer the question.
What roles do businesses play in this model? Select ALL that apply.
Businesses act as sellers of commercial debt.
Businesses act as consumers of commercial
debt.
Businesses act as sellers of goods and services.
Businesses act as consumers of goods and
services.
Businesses act as consumers of factor of production
resources.
Use the diagram illustrating the US economy to answer the question.
Which statement about the relationships illustrated in the diagram are correct?
The inner arrows represent the flow of money
and the outer arrows represent the flow of
products and resources.
The inner arrows represent the flow of products
and resources and the outer arrows represent
the flow of money.
The inner arrows represent the impact of
monetary policy and the outer arrows represent
the impact of fiscal policy.
The inner arrows represent the impact of fiscal
policy and the outer arrows represent the impact
of monetary policy.
Which statement BEST explains the roles of businesses and households in the Product market?
Households sell products, while businesses buy
products.
Both households and businesses buy products.
Households buy products, while businesses sell
products.
Both households and businesses sell products.
Look at the circular flow diagram of a free market economy. Then answer the question that follows.
Which of the following correctly completes the diagram?
Businesses
Consumers
Markets
Stocks
What occurs in the factor market?
Money flows from households to businesses and finished products flow from businesses to
households.
Money flows from households to businesses and productive resources flow from businesses to
households.
Money flows from businesses to households and productive resources flow from households to
businesses.
Money flows from businesses to households and finished products flow from households to
businesses.
In the circular flow diagram, what do businesses pay households for in the factor market?
Interest
Income
Goods and services
Taxes
