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Mic1: circular flow model, barter, functions of money
By Jeffrey See
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Last updated about 6 years ago
5 questions
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Question 1
1.
Correctly place the items from the
circular flow model
above under the product or resource/factor market.
Business firms earn revenue
Business firms pay the costs of production
Business firms sell and households buy
Households earn income
Households buy goods/services
Business firms buy and households sell
Business firms buy resources
Product Market
Resource/Factor Market
Question 2
2.
The factor payments for land, labor, capital, and entrepreneurship respectively are:
rent, interest, profit, and wages
rent, wages, interest, and profits
interest, wages, rent, and profit
profit, interest, wages, and rent
Question 3
3.
When you deposit $100 into a savings account at the bank to be used later, what
function
is money serving?
Measure of value/unit of account
Spending value
Medium of exchange
Store of value
Question 4
4.
When an advertisement says the new iphone 11 costs $1,000, what
function
is money serving?
Measure of value/unit of account
Medium of exchange
Spending value
Store of value
Question 5
5.
When you pay $20 to see the latest Marvel movie, what
function
is money serving?
Medium of exchange
Measure of value/unit of account
Store of value
Spending value
