Microeconomics Flashcard (SSEMI1 - SSEMI3)

Front

How do individuals contribute to the circular flow of economic activity?

Back

Individuals provide labor for factor markets and buy goods in product markets.

Front

In the picture of the CFM, what market do individuals sell their labor?

Back

Factor Market

Front

In the Circular Flow model, where do firms sell their products?

Back

product markets

Front

Where do factors of production (land, labor, etc) come from in the circular flow model?

Back

Individuals

Front

2 sector model showing how businesses & households interact (SSEMI1)

Back

Circular Flow Diagram

Front

A person who buys goods and services.

Back

consumer

Front

How much people want something. (SSEMI2)

Back

demand

Front

Something we pay for that we can touch.

Back

goods

Front

The place where goods and services are exchanged. (SSEMI2)

Back

market

Front

Something we pay to use for a certain amount of time (SSEMI2)

Back

services