Which statement is true about the circular flow diagram?

A Households are demanders in the product market and suppliers in the factor market

A Business are demanders in the product market and suppliers in the factor market.

A Households are demanders in the factor market and suppliers in the product market.

A Businesses and households are not components of the circular flow diagram.

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 three entities make up the circular flow model?

businesses, households, and the government

Local, state, and federal government

President Obama, Katy Perry, Waka Flocka

Payment for the factors of production, namely rent, wages, interest, and profit

Method for determining comparative advantage that measures what goes into production by using the formula IOU (Other goes Under)

The “place” where resources (land, labor, capital, and entrepreneurship) are sold to businesses

The “place” where goods and services produced by businesses are sold to households

Method for determining comparative advantage that measures what is produced by using the formula OOO (Other goes Over)

Method for determining comparative advantage that measures what goes into production by using the formula IOU (Other goes Under)

The “place” where resources (land, labor, capital, and entrepreneurship) are sold to businesses

The “place” where goods and services produced by businesses are sold to households

Payment for the factors of production, namely rent, wages, interest, and profit

The producer that can produce the most output OR requires the least amount of inputs (resources)

The producer with the lowest opportunity cost

When the government redistributes income

Any point on the PPC representing products that are being produced in the least costly way

The most optimal point on the PPC representing products that are being produced are the ones most desired by society

When the government redistributes income

The producer with the lowest opportunity cost

Any point on the PPC representing products that are being produced in the least costly way

The producer that can produce the most output OR requires the least amount of inputs (resources)

The most optimal point on the PPC representing products that are being produced are the ones most desired by society

Increasing Opportunity Cost

Resources are NOT easily adaptable to producing both goods resulting in a bowed out curve on the PPC

An economic system with free markets but also some government intervention

An economic system where individuals answer the 3 economic questions and own all resources

An economic system where the government answers the 3 economic questions and owns all resources

Resources are easily adaptable for producing either good creating a straight line on the PPC

If demand for golf balls decreases when the price of baseball gloves decreases, we can stay that baseball gloves and golf balls players are

unrelated due to the substitution effect

2.1 Circular Flow and GDP

Authored by Angela Hack

Social Studies

12th Grade

Used 43+ times

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25 questions

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MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Point B represents

Product Market

Factor Market

Individuals

Businesses

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What are the four main parts of the circular flow diagram?

Product Market, Stock Market, Factor Market, Fish Market

Product Market, House Market, Factor Market, Good Market

Factor Market, Product Market, Households, Firms

Factor Market, households, Stock Market, super market

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

What does point A represent on the Circular flow diagram?

Households

Businesses

Factor Market

Product Market

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

Factor Market

Product Market

Firms

Individuals

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

Factor Market

Product Market

Firms

Individuals

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the circular flow diagram firms pay wages for which factor of production?

Land

Labor

Entrepreneurship

Raw materials

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

What does point C represent on the Circular Flow diagram?

Firm

Factor Market

Individual

Product Market

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2.1 Circular Flow and GDP

Point B represents

What are the four main parts of the circular flow diagram?

What does point A represent on the Circular flow diagram?

Where are factors of production (land, labor, etc) exchanged in the circular flow model?

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

In the circular flow diagram firms pay wages for which factor of production?

What does point C represent on the Circular Flow diagram?

The exchange of money for goods/services to consumers is represented in which part of the circular flow diagram?

A person stocks shelves at a grocery store and receives a wage. They have completed an exchange in which part of the circular flow model?

Which statement is true about the circular flow diagram?

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