Circular Flow Model
10 Questions
| Attempts: 260
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
Correct Answer
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
Correct Answer
A. Firms -
- 3.
Wages, rents, interests, and profits are part of money income
- A.
True
- B.
False
Correct Answer
A. True -
- 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
Correct Answer
A. True -
- 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
Correct Answer
C. Households -
- 6.
Equilibrium is where supply and demand are not the same
- A.
True
- B.
False
Correct Answer
B. False -
- 7.
Households use the same balance sheets as companies do.
- A.
True
- B.
False
Correct Answer
A. True -
- 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
Correct Answer
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
Correct Answer(s)
A. Home loans
B. Loans for household items
C. Credit debt -
- 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
Correct Answer
B. First and most important -
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Current Version
-
Jan 11, 2013Quiz Edited by
ProProfs Editorial Team -
Apr 21, 2010Quiz Created by
Petersnj
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