Circular Flow Model

What does point A represent on the Circular flow diagram?

• Households

• Businesses

• Factor Market

• Product Market

In the circular flow diagram below:

• Households spend income in the product market

• Firms sell resources to households

• Households receive income through the product market

• Households produce goods

In the circular flow model, what do households provide to firms?

• Goods and services

• Labor and resources

• Taxes

• Subsidies

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

• Land

• Labor

• Entrepreneurship

• Raw materials

Point B represents

• Product Market

• Factor Market

• Individuals

• Businesses

Weston purchases a new car from a Toyota dealer, in the Circular Flow Diagram, Toyota would be an example of:

• a household participating in the resource market

• a household participating in the product market

• a government participating in the product market

• a business participating in the resource market

• a business participating the product market

Correctly match the label to the diagram​ ​

a

b

c

d

Households

Businesses

Product Market

Factor Market

Correctly match the label to the diagram

a

b

c

d

e

f

sells goods and services

income

buys goods and services

revenue

sells factors of production

buys factors of production

Correctly match the label to the appropriate place on the diagram

a

b

c

d

e

resources

expenditures

leakage

injection

products

The yellow arrows in this diagram represent...

• the factor market

• the product market

• factors of production

• goods and services