Economics Honors
Name:__________________________ Date: ______________
Circular Flow of the Macroeconomy
Take-Home Quiz
(A) Write True or False next to each statement in exercises 1 through 5 below.
1. In the Circular Flow Model, money flows in the same direction as goods and services _________.
2. The factors market determines the price of labor. _____________
3. The products market determines the price of a car. _____________
4. Firms sell economic resources to the households. ______________
5. The factors market determines the salary of a manufacturing worker. ______________
(B) Complete the following:
In the Circular Flow Model…
6. In the simple circular flow diagram there are two economic agents: _________ and __________.
7. Firms buy _______________ in the ___________ markets.
8. Households sell ____________ in the _____________ markets.
9. Households buy ____________ in the _____________ markets.
10. Firms sell _____________ in the _______________ markets.