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ECON Blind: Chapter 3 Circular Flow Flashcards | StudBud
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ECON Blind: Chapter 3 Circular Flow
ECON Blind: Chapter 3 Circular Flow
28 terms
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StudBud Administration
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82 plays
Circular Flow #tamoclass #sbhsecon
Flashcards
28 cards
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Practice quiz
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Questions
28
Answers
1
A market is an arrangement that brings together
buyers and sellers
different groups of businesses and industries
buyers and households
the factors of production and households
2
The circular flow model shows that goods and services flow from
businesses to households
households to businesses
the resource market to businesses
the product market to businesses
3
The circular flow model shows the
distribution of income to different factors of production
combinations of resources needed to produce goods & services
expenditure & incomes from households' & firms' decisions
distribution of income & goods across income levels
4
Which of the following flows in the opposite direction from the flow of factors of production?
interests payments of Federal, state, and local governments
finished goods and services
business' profit incentives
wages, rent, interest, and profit
5
The decisions of businesses and households are
unexplainable by the circular flow model
coordinated by markets
controlled by but not totally coordinated by the government
made independently of one another
6
Product Market
"Can you explain it again"
"I got this"
7
Terri's presentation about the circular flow should include the following statement
Businesses choose amount of resources to provide households
Households receive wages for entrepreneurship they provide
Businesses pay wages for amount of entrepreneurship provided
Households choose amount of resources to provide businesses
8
In the circular flow model which of the following is on the buying side of the resource market?
households
businesses
federal, state, and local governments
businesses and households
9
Read Chapter 3.
"I'm drowning in homework. I'm going to do it later."
3.5 Characteristics of US Economic System (pp.50-53)
"No way."
3.4 How Do Mixed Economies Divide Decision Making (pp.47-50)
10
In the circular flow model, which is on the selling side of the resource market?
businesses
federal, state, and local governments
businesses and households
households
11
Private Sector
"I got this"
"Can you explain it again"
12
Resource Market
"Can you explain it again"
"I got this"
13
The circular flow model shows the
expenditure & incomes from households' & firms' decisions
combinations of resources needed to produce goods & services
distribution of income to different factors of production
distribution of income & goods across income levels
14
The circular flow model shows that in the resource market
households pay for the goods and services they purchase
businesses provide rent for capital
households receive profit for capital
businesses provide wages for labor
15
Dan asked his friend Joan to explain markets to him. Joan correctly stated that a market
must include a written contract between buyers & sellers
is only a place to purchase groceries
requires a location for buyers & sellers to get together
is any arrangement that brings buyers & sellers together
16
In the circular flow model, who hires the factors of production in the resource market?
an agency of the Federal government
businesses
households
both businesses and households
17
Within the circular flow, there are two markets. These markets are the
product market & the resource market
market for the government and the market for everyone else
market for tangibles and the market for intangibles
market to sell goods & market to sell services
18
Participants
"I got this"
"Can you explain it again"
19
Describe the circular flow & the role of producers & consumers.
"I got this"
"Can you explain it again"
20
In the circular flow model, consumption goods are bought and sold in the
resource market
government market
product market
financial market
21
In the circular flow model which of the following is on the selling side in the product market?
both businesses and households
federal, state, and local governments
households
businesses
22
Public Sector
"Can you explain it again"
"I got this"
23
The decision by households not to purchase as many new cars this year is signaled in the
resource market and not the product market
product market and not the resource market
product market and the resource market
capital market
24
(Phone face down.)
Explain
and
Discuss
the circular flow.
"I got this"
"Can you explain it again"
25
Want to play again? Play in
Ghost Mode
! Improve your score.
"Let's play again next week with prizes."
"Not interested."
26
In the circular flow model, which of the following owns the factors of production?
businesses
federal, state, and local governments
households
both businesses and households
27
In the circular flow model, the resource market is the market in which
consumption goods and services are bought and sold
investment goods and services are bought and sold
land, labor, capital, & entrepreneurship are bought & sold
government goods and services are provided
28
Describe the circular flow & the role of producers & consumers.
"I understand some parts of this."
"Yup, I got this"
"Help, can you explain it again."
