Micro: Market System Quiz

In the circular flow model, producers - and households spend income on goods and services sold in resources markets - acquire productive assets provided by households in resource markets - sell goods and services in the resource markets - spend earnings from resource sales on goods and services in the product market.

- acquire productive assets provided by households in resource markets

Which of the following are legal forms of business? - Sole Proprietorship - Partnership - Corporation - All of the above

All of the above

The __________ demonstrates the roles played by households and firms in the market system - production possibilities frontier - circular flow model - business cycle - theory of comparative advantage

circular flow model

The income earned by those who supply _______ is called wages - labor - entrepreneurship - natural resources - capital

labor

The term ________ in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade. - market - collective - trade-off - cooperative

market

When you purchase a new pair of jeans you do so in the - input market - product market - resource market - factor market

product market

Which of the following best describes the allocative function of government? - provision of public goods and services - creation of entitlement programs, such as social security and Medicare - implementation of fiscal policy - all of the above

provision of public goods and services

Households __________ final goods and services in the ____________ market. - sell; factor - purchase; product - purchase; factor - sell; product

purchase; product

Land resources used in production are made available in the - resource market - government market - product market - goods and services market

resource market

Households - sell their labor services in the resource market - purchase goods in the resource market - sell goods in the product market - have no influence on circular flows

sell their labor services in the resource market

Which of the following are separate flows in the circular flow model? - the flow goods and the flower of services - the flow of income received by households and the flow of tax paid by households - the flow of income earned from resource provision and the flow of expenditures on goods and services purchased. - the flow of costs and the flow of revenue

the flow of income earned from resource provision and the flow of expenditures on goods and services purchased.

Which of the following is a flow in the circular flow model? - the flow of revenue received by firms and the flow of payments to resource owners - the flow of income earned by firms and the flow of expenditures earned by household - the flow of goods and services from households to firms - the flow of profit and the flow of revenue

the flow of revenue received by firms and the flow of payments to resource owners