Chapter 02 The Market System and the Circular Flow

Question # 00038514 Posted By: solutionshere Updated on: 12/24/2014 04:41 AM Due on: 12/24/2014
Subject General Questions Topic General General Questions Tutorials:
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79.

The simple circular flow model shows that:


A.

households are on the buying side of both product and resource markets.

B.

businesses are on the selling side of both product and resource markets.

C.

households are on the selling side of the resource market and on the buying side of the product market.

D.

businesses are on the buying side of the product market and on the selling side of the resource market.

80.

The two basic markets shown by the simple circular flow model are:


A.

capital goods and consumer goods.

B.

free and controlled.

C.

product and resource.

D.

household and business.

81.

In the resource market:


A.

businesses borrow financial capital from households.

B.

businesses sell services to households.

C.

households sell resources to businesses.

D.

firms sell raw materials to households.

82.

In the simple circular flow model:


A.

households are buyers of resources.

B.

businesses are sellers of final products.

C.

households are sellers of final products.

D.

there are real flows of goods, services, and resources, but not money flows.

83.



Refer to the diagram. Flow 1 represents:


A.

wage, rent, interest, and profit income.

B.

land, labor, capital, and entrepreneurial ability.

C.

goods and services.

D.

consumer expenditures.

84.



Refer to the diagram. Flow 2 represents:


A.

wage, rent, interest, and profit income.

B.

land, labor, capital, and entrepreneurial ability.

C.

goods and services.

D.

consumer expenditures.

85.



Refer to the diagram. Flow 3 represents:


A.

wage, rent, interest, and profit income.

B.

land, labor, capital, and entrepreneurial ability.

C.

goods and services.

D.

consumer expenditures.

86.



Refer to the diagram. Flow 4 represents:


A.

wage, rent, interest, and profit income.

B.

land, labor, capital, and entrepreneurial ability.

C.

goods and services.

D.

consumer expenditures.

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Tutorials for this Question
  1. Tutorial # 00037759 Posted By: solutionshere Posted on: 12/24/2014 04:53 AM
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    consumer goods. B. free and controlled. C. product and resource. ...
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