Circular Flow Model

Question 1

Product Market <---- Firms (flow of goods & services)

Accepted Answer

Products

Question 2

Factor Market ----> Firms (flow of goods & services)

Accepted Answer

Labor/Resources

Question 3

Money and products flow in opposite ways.

Accepted Answer

True

Question 4

Firms = Businesses (ex.factories)

Accepted Answer

True

Question 5

Household <---- Factor Market (flow of $)

Accepted Answer

Income

Question 6

Household <---- Product Market (flow of goods & services)

Accepted Answer

Products

Question 7

REVIEW QUESTION: Prices send signals to buyers

Accepted Answer

True

Question 8

Firms ----> Factor Market (flow of $)

Accepted Answer

Wages/Salaries

Question 9

Household ----> Product Market (flow of $)

Accepted Answer

Spending

Question 10

Product Market = Consumers & Resource Owners

Accepted Answer

False

Question 11

Household ----> Factor Market (flow of goods & services)

Accepted Answer

Labor/Resources

Question 12

A factor market does not include land.

Accepted Answer

False

Question 13

Equilibrium- when demand and supply are almost the same.

Accepted Answer

False

Question 14

Product Market ----> Firms (flow of $)

Accepted Answer

Revenue

Question 15

Consumers take part in the product market and the factor market.

Accepted Answer

True

Questions 15