Circular Flow of Economic Activity Quiz

What is the primary focus of this video tutorial?

• Advanced calculus in economics

• Practice problems on the circular flow model

• History of economic models

• Introduction to economic theories

According to the tips, where should businesses and households be positioned in the circular flow model?

• In the center of the model

• On opposite sides

• In the same box

• Next to each other

In the circular flow model, what is the relationship between goods and services and money?

• They flow in the same direction

• They flow in opposite directions

• They do not interact

• They are exchanged at the same point

Where do final goods and services flow from in the circular flow model?

• Households to businesses

• Product market to households

• Factor market to businesses

• Businesses to factor market

If money flows from households to the product market, what flows in the opposite direction?

• Land

• Labor

• Goods and services

• Capital

In a real-life scenario, if a person buys a service, where does the transaction occur in the circular flow model?

• Households

• Product market

• Businesses

• Factor market

If businesses are sellers in a market, which market are they likely representing?

• Product market

• Factor market

• Households

• Government

When hiring new employees, from which part of the circular flow model do businesses acquire labor?

• Product market

• Factor market

• Households

• Government

If wages are represented by the flow of money from the factor market to households, what does this indicate?

• Households are selling goods

• Businesses are selling products

• Businesses are buying labor

• Households are buying services

In the circular flow model, who are the buyers of land, labor, and capital?

• Foreign markets

• Households

• Government

• Businesses