Circular Flow Of A Market Economy! Trivia Quiz

10 Questions | Total Attempts: 9504

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Circular Flow Quizzes & Trivia

This quiz will test the knowledge acquired by students during the lecture periods focused on the circular flow of the market economy. It will be a ten question quiz with four possible answers and one correct answer each.


Questions and Answers
  • 1. 
    The two primary players in the circular flow model are:
    • A. 

      People and Stores

    • B. 

      Households and Businesses

    • C. 

      Businesses and People

    • D. 

      Households and Schools

  • 2. 
    What is the driving force behind the circular flow of the market economy?
    • A. 

      Money

    • B. 

      Reputation

    • C. 

      Fame

    • D. 

      Profits

  • 3. 
    What do businesses provide for the outside parties?
    • A. 

      Goods

    • B. 

      Money

    • C. 

      Services

    • D. 

      Goods and Services

  • 4. 
    What are the technical terms for the two main parties in the model?
    • A. 

      Consumers and Factories

    • B. 

      Producers and Consumers

    • C. 

      Schools and Taxpayers

    • D. 

      People and CEOs

  • 5. 
    What are the resources employed to produce goods and services?
    • A. 

      Income Flow

    • B. 

      Labor Market

    • C. 

      Factors of Production

    • D. 

      Total Working Factors

  • 6. 
    In the circular flow of a market economy, the working model assumes that three sectors of a normal economy do not exist. These are the financial sector, the overseas sector, and the _________ sector.
    • A. 

      Judicial

    • B. 

      Market

    • C. 

      Government

    • D. 

      Regulatory

  • 7. 
    The circular flow of a market economy also assumes that consumers spend all their money on goods, services, and consumptions. This means that there is no _________ on the part of the consumer.
    • A. 

      Saving

    • B. 

      Investing

    • C. 

      Managing

    • D. 

      Borrowing

  • 8. 
    Businesses provide a(n) _________ to households through employment.
    • A. 

      Job

    • B. 

      Product

    • C. 

      House

    • D. 

      Income

  • 9. 
    • A. 

      Labor

    • B. 

      Money

    • C. 

      Government Policies

    • D. 

      Economic Policies

  • 10. 
    The ___________ is where businesses buy the materials and labor needed to produce their product.
    • A. 

      Material Market

    • B. 

      Employment Market

    • C. 

      Black Market

    • D. 

      Resource Market