Circular Flow

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

What does point A represent on the Circular flow diagram?

• Households

• Businesses

• Factor Market

• Product Market

Point B represents

• Product Market

• Factor Market

• Individuals

• Businesses

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

• Factor Market

• Product Market

• Firms

• Individuals

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

• Factor Market

• Product Market

• Firms

• Individuals

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?

• Individuals

• Businesss

• Factor Market

• Product Market

Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?

• Product Market

• Factor Market

• Firms

• Individuals

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

In what market do businesses sell goods and services to households?

• Product Market

• Factor Market

• Resource Market

• None of the above