SOLVED

11) The circular flow model shows that goods and services flow from A) businesses to households. B) households to business. C) the factor market to businesses. D) the goods market to businesses. E) the factor markets to the goods markets. 12) As the circular flow model points out, a choice that households make is how A) many resources a firm will hire. B) many goods and services are produced. C) many goods and services are purchased. D) much labor is hired. E) much the government will collect in taxes and how much the government will spend on transfer payments. 13) In the circular flow model, which of the following owns the factors of production? A) only federal, state, and local governments B) only households C) only firms D) both firms and households E) firms, households, and all levels of government 14) In the circular flow model, the factor markets are the markets in which A) consumption goods and services are bought and sold. B) government goods and services are provided. C) land, labor, capital, and entrepreneurship are bought and sold. D) investment goods and services are bought and sold. E) governments impose all their taxes. 15) A money flow in the circular flow diagram is i)the government’s collection of taxes ii)Chevrolet’s production of SUVs iii)Nike’s payment of wages to its workers A) i and iii B) i, ii and iii C) i only D) ii only E) ii and iii 16) A real flow in the circular flow diagram is i)a firm’s payments of wages to its workers. ii)a household’s purchase of a new car. iii)a farmer’s use of land to grow corn. A) ii and iii B) i only C) i and iii D) ii only E) i, ii and iii 17) An example of a real flow in the circular flow diagram is A) a household’s supply of work effort at its new business. B) the government’s payment of wages to a soldier. C) Nike’s payment of wages to workers in China. D) your county’s collection of property taxes. E) a teacher’s salary at the local high school. 18) An example of a money flow in the circular flow diagram is A) a student’s payment of tuition to her university. B) the government’s operation of the court system. C) the government’s financing of the national debt. D) a firm’s production of goods to sell to a foreign country. E) a farmer’s use of land to grow wheat. 19) As the circular flow model shows, the factors of production flow from A) firms to households through the factor market. B) households to firms through the factor market. C) firms to households through the goods market. D) households to firms through the goods market. E) the goods market through firms to the factor markets. 20) In the circular flow model, the factors of production flow in the A) same direction as do the rents, wages, interest, and profits. B) opposite direction as do the rents, wages, interest, and profits. C) opposite direction as does the government. D) same direction as does the goods market. E) opposite direction as does the goods market.