stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Do you know the flow? Flashcards | StudBud
Explore
/
Do you know the flow?
Do you know the flow?
22 terms
·
StudBud Administration
·
306 plays
#economics #circularflow #productivity
Flashcards
22 cards
F
Practice quiz
P
Host live
L
Questions
22
Answers
1
Labor receives what kind of factor payments?
Profits
Wages or salaries
interest
Rent
2
THE TWO-SECTOR CIRCULAR FLOW MODEL CONSISTS OF WHAT TWO SECTORS?
Government and Households
none of the above
Individuals and Government
Individuals and Firms
3
What type of purchase would the government make in the product market?
real estate for a new community center
hiring a consultant to make a government office more efficient
cyber security software to protect government databases
GPS systems for police vehicles and fire trucks
4
Government spending does not influence demand in an economy
True
False
5
Most public goods are free (paid for through taxes and service fees)
False
True
6
IN THE THREE-SECTOR MODEL, THE ECONOMY IS DIVIDED INTO WHAT SECTORS?
Government, Individuals(Households) and Firms
none of the above
Church, State and Private Industry
Command, Mixed and Market Economy
7
IN PRODUCT MARKETS, WHO ARE THE BUYERS AND WHO ARE THE SELLERS?
businesses and firms only
households are the buyers and businesses are the sellers
only individuals on the black market
The government only
8
Businesses only act as producers in the circular flow
False
True
9
What is exchanged between the government and the product market?
Public goods and taxes
Goods and services/payments
Entrepreneurship and income
Land and Labor and income
10
Where might you fit into the circular flow model everyday?
Providing labor or my ideas in the factor market
buying goods/services on the product market
11
What do households or individuals receive from the government in the circular flow model?
Transfer payments/entitlements and public goods
Absolutely nothing
A pardon for crimes committed against government
Something to complain about for the upcoming elections
12
What is an example of a public good?
Roads
National defense
All of the above
Education
13
Who supplies the factors of production in a Circular flow economy?
Government
Businesses
Individuals/Households
Nobody
14
TO WHAT DOES THE TERM FACTORS OF PRODUCTION REFER?
All of the above
anything used by a firm in order to make a final product
Land and labor
capital and entrepreneurship
15
WHAT DOES THE CIRCULAR FLOW MODEL DESCRIBE?
Interdependence among household and firms
how government buys and sells in the markets
All of the above
Flow of money through an economy
16
WHAT ARE FACTOR MARKETS?
Where consumer goods and services are bought and sold
Factor markets are markets for economic resources needed to make cool stuff
A underground network of swindling mathematicians
none of the above
17
Businesses do not benefit from public goods provided by the government
False
True
18
A factor payment for labor
Cold hard cash
Income
Wages
Salary
19
How does the banking system influence the circular flow in an economy?
by operating just like a firm or business
give loans to businesses and households to make purchases
facilitate transactions in the product market and resource market
all of the choices are correct
20
WHAT ARE PRODUCT MARKETS?
Its like a farmer's market but BIGGER
I do not know!
Where goods and services are bought and sold
where the four factors of production are bought and sold
21
What type of purchase would the government make in the factor (resource) market?
GPS systems for police vehicles and fire trucks
real estate for a new community center
hiring a consultant to make a government office more efficient
cyber security software to protect government databases
22
Both individuals and businesses demand goods and services and labor in the economy
True
False
