Review Unit 3 Test

________________ are the owners of the productive resources (factors of production) in the circular flow model. They sell their land, labor, capital, and entrepreneurship in the _____________ ______________ in exchange for income payments.

• Businesses/product market
• Businesess/resource market
• Households/product market
• Households/resource market

________________ are the consumers of the productive resources (factors of production) in the circular flow model. They purchase the use of land, labor, capital, and entrepreneurship in the _____________ ______________ .

• Businesses/product market
• Businesess/resource market
• Households/product market
• Households/resource market

__________________ are the consumers of goods and services in the circular flow model. They spend the income they earn to buy goods and services in the _____________ ________________ .

• Businesses/product market
• Businesess/resource market
• Households/product market
• Households/resource market

__________________ are the consumers of goods and services in the circular flow model. They spend the income they earn to buy goods and services in the _____________ ________________ .

• Businesses/product market
• Businesess/resource market
• Households/product market
• Households/resource market

In the resource market, the payments for resources have specific names. Match the following resource to its payment type: land.

• interest
• wages
• profit
• rent

In the resource market, the payments for resources have specific names. Match the following resource to its payment type: labor.

• interest
• wages
• profit
• rent

In the resource market, the payments for resources have specific names. Match the following resource to its payment type: capital.

• interest
• wages
• profit
• rent

In the resource market, the payments for resources have specific names. Match the following resource to its payment type: entrepreneurship.

• interest
• wages
• profit
• rent

_____________________ is the point of intersection between the market demand curve and the market supply curve. This is also the point at which the quantity demanded by consumers is equal to the quantity supplied by producers.

• law of supply
• market equilibrium
• law of demand
• circular flow diagram

Since price floors are above equilibrium, there will be a larger quantity supplied than there is a quantity demanded, resulting in a __________.

• shortage
• surplus
• disequilibrium