EPF 2 Part 3 (Circular Flow Model/Productivity)

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

• Factor Market

• Product Market

• Businesses

• Households

What does point A represent on the Circular flow diagram?

• Households

• Businesses

• Goods and Services

• Factor of Production

Point B represents

• Households

• Factor of Production

• Goods and Services

• Businesses

What does point C represent on the Circular Flow diagram?

• Firm

• Households

• Goods and Services

• Businesses

Money exchanged between businesses and individuals for labor.

• wages

• revenue

• spending

• profit

Money exchanged between an individual and a store for a good or service.

• Revenue

• Wages

• Rent

• Donation

What do households provide to the resource market?

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

What is the circular flow model?

• a model that rotates in a circle

• circular flow model is an economic model that presents how money, goods, and services move between sectors in an economic system.

• circular flow model is an economic model that presents how money, goods, and sales move between sectors in an economic system.

• circular flow model is an business model that presents how money, goods, and services move between sectors in an economic system.

In regards to human capital, what can businesses invest in that will improve quality of work?

• Water

• Money

• Education

• Utilities

What type of workforce can lead to increased productivity?

• Veteran

• Knowledgeable

• Rookies

• Diverse