Circular Flow Model Vocab Review - Tarik Davis | Biblioteka

1

What two roles do households play in the Circular Flow Model?

Suppliers in the resource market

Producers of goods and services

Consumers in the product market

Owners of businesses

1

In the Circular Flow Model, businesses provide which two items to households?

Goods and services

Income

Resources and factors of production

Expenditures

1

Which two components are part of the money flow in the Circular Flow Model?

Rent paid by firms

Revenue received by businesses

Goods sold to consumers

Wages paid to households

1

What two transactions occur in the resource market?

Businesses buy goods from households

Households sell labor to businesses

Businesses pay wages to households

Households request services from firms

1

Which two of these are factors of production?

Labor

Goods

Capital

Money

1

Which two elements describe real flow in the Circular Flow Model?

Money flows from consumers to firms

Income flows from businesses to households

Resources move from households to businesses

Goods move from businesses to households

1

In the product market, households do what two activities?

Supply money for expenditures

Provide resources for production

Purchase goods and services

Sell products to businesses

1

What two things do businesses aim to achieve in the Circular Flow Model?

Produce goods and services

Generate revenue

Limit expenditures

Reduce household income

1

Which two actions are taken by households regarding income?

Create goods

Invest in businesses

Make expenditures

Receive wages

1

In the Circular Flow Model, what flows from households to businesses?

Profit

Expenditures

Resources

Goods and services