Circular Flow Model Review

1.

Multiple Choice

20 sec

1 pt

Businesses provide government with...

taxes

sales

private goods & services

interest

2.

Multiple Choice

30 sec

1 pt

What do governments provide for the market?

private goods & services

public goods & services

3.

Multiple Choice

1 min

1 pt

In terms of resources, what do households provide for businesses?

loans

savings

labor

private goods

4.

Multiple Choice

1 min

1 pt

In terms of resources, what do businesses provide for households?

income

sales

taxes

private goods

5.

Multiple Choice

1 min

1 pt

In the circular flow model, the product market describes _____.

stores that sell goods and services to households

the government paying for public goods

households selling their labor to businesses

households receive income from businesses

6.

Multiple Choice

1 min

1 pt

In this market, businesses buy resources they need to produce goods and services.

factor market

stores

product market

businesses

7.

Multiple Choice

1 min

1 pt

What do households provide to the resource market?

land, labor, capital, and entrepreneurship

money

people

income

8.

Multiple Choice

1 min

1 pt

What do businesses provide for consumers according to the circular flow model?

goods and services

only goods

only services

taxes

9.

Multiple Choice

1 min

1 pt

IN the picture, what should replace Z?

Factor Market

Firms

Product Market

Consumers

10.

Multiple Choice

1 min

1 pt

In the picture, what should replace W?

Factor Market

Product Market

Consumers

Firms

11.

Multiple Choice

20 sec

1 pt

Look at the picture. What should replace Y?

Consumers

Firms

Factors

Revenue

12.

Multiple Choice

20 sec

1 pt

What does government provide with the revenue it takes in from taxes?

Headaches

Public goods and services

More Congressmen

Greater control of the media

13.

Multiple Choice

1 min

1 pt

In the products market

firms buy goods and services from households

firms sell goods and services to households

firms sell resources to households

firms buy resources from households

14.

Multiple Choice

1 min

1 pt

Which statement is true about the circular flow diagram?

A Households are demanders in the product market and suppliers in the factor market

A Business are demanders in the product market and suppliers in the factor market.

A Households are demanders in the factor market and suppliers in the product market.

A Businesses and households are not components of the circular flow diagram.

15.

Multiple Choice

1 min

1 pt

Place where buyers and sellers meet to exchange goods and services for money

Market

Factor of production

Money

Interdependent

16.

Multiple Choice

1 min

1 pt

Which term belongs in the empty box near the bottom of the picture?

Government

Resource market

taxes

goods and services

17.

Multiple Choice

20 sec

1 pt

The missing label in the CFI diagram is...?

Government Sector

Financial Sector

Households

Firms

18.

Multiple Choice

1 min

1 pt

This diagram is called a:

Production Possibilities Curve

Supply and Demand Curve

Circular Flow Model

Circular Motion Equation

19.

Multiple Choice

1 min

1 pt

This circular flow model would be for a __________ economy

Traditional

Planned/Command

Free Market

Mixed Economy

20.

Multiple Choice

20 sec

1 pt

This circular flow model would be for a __________ economy

Traditional

Planned/Command

Free Market

Mixed Economy

21.

Multiple Choice

1 min

1 pt

Which of the following is not an injection into the circular flow of national income?

Government expenditure

Government salaries paid to civil servants

Government taxation

The purchase of a domestically produced good by a foreign company

22.

Multiple Choice

1 min

1 pt

Which one of the following items constitutes a withdrawal/leakage from the circular flow of income of an economy?

The purchase of a domestically produced good by a domestic company

The purchase of a domestically produced good by a foreign company

The payment of value added tax on goods sold in the domestic market

Government aid to companies in financial difficulties

23.

Multiple Choice

1 min

1 pt

Which one of the following is an injection into the circular flow of income?

Personal income tax

Government purchases of factor services

Imports

Business tax

24.

Multiple Choice

30 sec

1 pt

1. Which statement best explains the roles of businesses and households in the Resource (factor) market?

Households sell resources, while businesses buy resources.

Households buy resources, while businesses sell resources.

Both households and businesses buy resources.

Both households and businesses sell resources.

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