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Circular Flow Model Review

Total questions: 15

Worksheet time: 5mins

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 resources, what do businesses provide for households?
a)
income
b)
sales
c)
taxes
d)
private goods
5.

What do households provide to the resource market?

a)

land, labor, capital, and entrepreneurship

b)

money

c)

people

d)

income

6.
What do businesses provide for consumers according to the circular flow model?
a)
goods and services
b)
only goods
c)
only services
d)
taxes
7.

What does government provide with the revenue it takes in from taxes?

a)

Headaches

b)

Public goods and services

c)

More Congressmen

d)

Greater control of the media

8.
Place where buyers and sellers meet to exchange goods and services for money
a)
Market
b)
Factor of production
c)
Money
d)
Interdependent
9.

The missing label in the CFI diagram is...?

a)

Government Sector

b)

Financial Sector

c)

Households

d)

Firms

10.

This diagram is called a:

a)

Production Possibilities Curve

b)

Supply and Demand Curve

c)

Circular Flow Model

d)

Circular Motion Equation

11.

This circular flow model would be for a __________ economy

a)

Traditional

b)

Planned/Command

c)

Free Market

d)

Mixed Economy

12.

This circular flow model would be for a __________ economy

a)

Traditional

b)

Planned/Command

c)

Free Market

d)

Mixed Economy

13.

Economic activity is best described as any activity which:

a)

results in the production of essential goods and services

b)

enables goods and services to be sold for a profit

c)

provides those goods and services which satisfy our wants

d)

allows the replacement of worn out products

14.

Recent improvements in technology in Australia have:

a)

educed our wants since products are now of a higher quality

b)

increased our capacity to produce more goods and services

c)

 resulted in improved employment opportunities

d)

 resulted in lower living standards as resources become depleted

15.
Which one of the following is an injection into the circular flow of income?
a)
Personal income tax
b)
Government purchases of factor services
c)
Imports
d)
Business tax