Home Library Explore SAT

Home Library Explore SAT

Real flow Flashcards | StudBud

Explore/Real flow

What is income in the circular flow model?

Give examples of goods/services firms provide.

Real flow

10 terms·StudBud Administration·20 plays

Imported from external platform

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
Give examples of goods/services firms provide.
Land, entrepreneurship, and skills
Taxes, subsidies, and permits
Food, clothing, and internet services
Tools, labor, and technology
2
What is income in the circular flow model?
Revenue earned by the government
Funds borrowed from banks
Earnings received by households for providing factors of production
Money spent by households
3
Savings by households provide the capital needed for investment in businesses.
True
False
4
What is investment in the circular flow model?
The taxes collected by the government
Spending by firms to produce goods and services
The money deposited into savings accounts
The income households earn from labor
5
What factors do households supply to firms?
Finished products
Labor, land, capital, and entrepreneurship
Loans and interest
Goods and services
6
What is profit in the circular flow model?
Wages paid to employees
Investments made by households
The money firms retain after covering cost
Taxes collected by the government
7
What are the two types of flows in the model?
Product and money flow
Physical and virtual flow
Supply and demand flow
Real and money flow
8
In the circular flow model, households supply factors of production to firms
False
True
9
Profits earned by firms have no impact on their ability to reinvest in the economy
False
True
10
What is the circular flow model?
A financial system diagram
A supply chain map
A business structure chart
A model of economic interactions