Circular Flow Model

Front

What is being represented by the "green flow lines"?

Back

Flow of Money

Front

In the circular flow model, the product market describes _____

Back

stores that sell goods and services to households

Front

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

Back

factor market

Front

Which of the following is NOT a factor of production? land, labor, capital, goods and services

Back

goods and services

Front

What do households provide to the resource market?

Back

land, labor, capital, and entrepreneurship

Front

The circular flow model of a market economy shows: how profits are made, what inputs are required for what outputs, how many firms can support the needs of how many households, the interactions between households and  firms in the free market

Back

the interactions between households and  firms in the free market

Front

What do businesses provide for consumers according to the circular flow model?

Back

goods and services

Front

In the circular flow diagram, where does Steel Beam Inc.'s purchase of a new steel-processing machine and factory take place? Options: Product market., Resource market, Foreign Exchange market, Public market

Back

Resource market

Front

In the picture, what should replace Z? (Options: Factor Market, Firms, Product Market, Consumers)

Back

Product Market

Front

In the picture, what should replace W? (Options: Factor Market, Product Market, Consumers, Firms)

Back

Factor Market