Aba Model Rules

10 Questions | Total Attempts: 12

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Aba Model Rules

This is a quiz covering the circular flow model


Questions and Answers
  • 1. 
    Which one of these would be a part of the Circular Flow Model?
    • A. 

      Resource Markets.

    • B. 

      Households

    • C. 

      Firms

    • D. 

      Product Markets

    • E. 

      All of the above

  • 2. 
    Goods and services come from
    • A. 

      Firms

    • B. 

      Product Markets

    • C. 

      Households

    • D. 

      Resource Markets

    • E. 

      All of the above

  • 3. 
    Wages, rents, interests, and profits are part of money income
    • A. 

      True

    • B. 

      False

  • 4. 
    The circular flow of goods and services is a simplified illustration of basically two flows: the flow of incomes to households from firms, and the flow of resources to firms from households.
    • A. 

      True

    • B. 

      False

  • 5. 
    You or I would count as a member of
    • A. 

      Businesses

    • B. 

      Factor Market

    • C. 

      Households

    • D. 

      Product Market

    • E. 

      All of the above

  • 6. 
    Equilibrium is where supply and demand are not the same
    • A. 

      True

    • B. 

      False

  • 7. 
    Households use the same balance sheets as companies do.
    • A. 

      True

    • B. 

      False

  • 8. 
    Assets include...
    • A. 

      Money in the bank

    • B. 

      Money saved for retirement

    • C. 

      Vehicles owned

    • D. 

      The family home

    • E. 

      All of the above

  • 9. 
    Liabilities include...
    • A. 

      Home loans

    • B. 

      Loans for household items

    • C. 

      Credit debt

    • D. 

      Education costs

    • E. 

      All of the above

  • 10. 
    Primary means...
    • A. 

      Top item

    • B. 

      First and most important

    • C. 

      The largest thing

    • D. 

      A school you go to as a child

    • E. 

      A and C