Week 2 Microeconomics

What three entities make up the circular flow model?

• businesses, households, and the government
• Buyers, sellers, producers
• Local, state, and federal government
• President Obama, Katy Perry, Waka Flocka

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

• goods and services
• only goods
• only services
• taxes

In the circular flow model, the product market describes _____.

• stores that sell goods and services to households
• the government paying for public goods
• households selling their labor to businesses
• households receive income from businesses

What do households provide to the resource market?

• land, labor, capital 
• money
• people
• income

Which of the following is an example of a product market?

• Amazon.com offering goods to consumers

• Governments providing loans to businesses

• Households providing labor to businesses.

• Consumers paying taxes to the government

Which of the following is an example of a factor market?

• The goods sold at Walmart.

• Apple purchasing the natural resources needed to make iPhones.

• McDonald's selling Big Macs "2 for $4".

• Shoe Carnival having a "Buy One, Get One Half Off" sale.

A _____________ economy is completely determined and controlled by a central planning authority or the government

• Traditional

• Planned/Command

• Mixed

• Free Market

A ______________ economy is guided primarily by custom, habit, and ritual.

• Traditional

• Planned/command

• Mixed

• Free Market

Moana's village would be an example of a ___________ economy.

• Traditional

• Planned/command

• Mixed

• Free-market

A _________ economy is a market-based system in which the government is involved to some extent.

• Traditional

• Planned/command

• Mixed

• Free Market