Circular Flow Diagram! Trivia Questions Quiz

10 Questions | Total Attempts: 113

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Circular Flow Diagram! Trivia Questions Quiz

The circular flow of income is a model established to show the "flow" of income in and out of a country. The circular flow diagram was conveniently established to show this flow in a more constructed manner. Test your knowledge on this diagram by taking our quiz!


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Questions and Answers
  • 1. 
    Firms in the economy produce goods/services by using inputs like
    • A. 

      Diagrams, flow charts, and equations

    • B. 

      Revenue, taxes, households, services

    • C. 

      Wages, building, machines, organizations

    • D. 

      Labor, land, capital, entrepreneur

  • 2. 
    In the circular flow model, what do individuals sell to businesses
    • A. 

      Services

    • B. 

      Money

    • C. 

      Resources 

    • D. 

      Goods

  • 3. 
    In FOP market, circular flow is like
    • A. 

      HH to Firms 

    • B. 

      HH to Organization

    • C. 

      Firms to HH

    • D. 

      Organization to HH

  • 4. 
    In the circular flow, we can actually talk about two markets. What are they?
    • A. 

      Natural market and stable market

    • B. 

      Command market and free market

    • C. 

      Resource market and product market 

    • D. 

      The international and domestic market

  • 5. 
    The circular flow model of a market economy shows
    • A. 

      What inputs are required for what outputs

    • B. 

      How many firms can support the needs of how many households

    • C. 

      The interactions between households and  firms in the free market

    • D. 

      How profits are made

  • 6. 
    Which statement is true about the circular flow diagram?
    • A. 

      Households are demanders in the product market and suppliers in the factor market 

    • B. 

      Businesses are demanders in the product market and suppliers in the factor market.

    • C. 

      Households are demanders in the factor market and suppliers in the product market.

    • D. 

      Businesses and households are not components of the circular flow diagram.

  • 7. 
    In the circular flow model, the product market describes…
    • A. 

      The government paying for public goods

    • B. 

      Households selling their labor to businesses

    • C. 

      Stores that sell goods and services to households 

    • D. 

      Households receive income from businesses

  • 8. 
    What do the households provide businesses?
    • A. 

      Wages

    • B. 

      Resources 

    • C. 

      Labour

    • D. 

      Goods and Services

  • 9. 
    What is being represented by the "green flow lines"
    • A. 

      Flow of Money 

    • B. 

      The flow of Goods and Services

    • C. 

      Flow of Resources

    • D. 

      Flow of Food

  • 10. 
    Which term belongs in the empty box near the bottom of the picture?
    • A. 

      Government

    • B. 

      Resource market

    • C. 

      Taxes

    • D. 

      Goods and services