Show:
Flow of Money
Flow of Resources
Product Market
Resource Market
Other CF Q's
100

This is when households spend money on products

Expenditures

100
These are the four main resources in economics, also called the factors of production or productive resources (must name each)

Natural, Human, Capital, and Entrepreneurship 

100

What do households demand in the product market?

Finished Goods

100

What do businesses demand in the resource market?

The Factors of Production

100

What are the two groups involved in the circular flow?

Households and Businesses

200

This is when households received money for working

Income

200

What is the most common resource used in the circular flow

Labor (Human Resource) 

200

What do businesses supply in the product market

Finished goods

200

What do households provide in the resource market?

The Factors of Production

200

The outer circle of the circular flow represents...

The flow of money

300

This is when businesses receive money from selling a product

Revenue

300

What do businesses do with resources?

Make products

300

Who is the consumer in the product market?

Households

300

Who is the consumer in the resource market?

Businesses

300

The inner circle of the circular flow represents...

The flow of resources

400

This is when businesses pay their employees

Wages

400

What is the difference between supplying a product and selling a product

Supplying makes the product available for purchase; selling it means it has been purchased. 

400

Who is the producer in the product market?

Businesses

400

Who is the producer in the resource market?

households

400

I can't think of another question, so here's a fun one: Where did Mr. B travel this summer?

China

500

What are the dangers of high inflation or people not earning money?

They both threaten to eliminate expenditures and revenue, meaning that businesses cannot pay their employees or earn a profit.

500
What is the danger of worker strikes or public health crises?

They both threaten to take away the factors of production from businesses, meaning that they cannot produce goods and services or make money

500
Explain the entire relationship that occurs in the product market.
Businesses supply products, and households purchase them; households spend money, and businesses earn revenue.
500

Explain the entire relationship that occurs in the resource market

Households supply resources, and businesses use them to make a product; businesses give out wages, and households earn income.

500

Why is circular flow so important to understand in economics?

It is the foundation of economic growth. It's how I buy things and how I earn money