Order instructions
__ 1. In the circular flow model, the business sector _____ goods and services in _____ markets.
- demands; product c. supplies; product
- demands; resource d. supplies; resource
___ 2. In the circular flow model, the household sector _____ goods and services in _____ markets.
- demands; product c. supplies; product
- demands; resource d. supplies; resource
___ 3. In the circular flow model, the business sector _____ the factors of production (inputs) in _____ markets.
- demands; product c. supplies; product
- demands; resource d. supplies; resource
___ 4. In the circular flow model, the household sector _____ the factors of production (inputs) in _____ markets.
- demands; product c. supplies; product
- demands; resource d. supplies; resource
___ 5. Which of the following would best explain an increase in the demand for jeans?
- A decrease in income, assuming jeans are normal goods
- A decrease in the popularity of jeans
- An increase in the number of schools that allow students to wear jeans
- A decrease in the price of jeans
Use the data below to answer questions 6 – 7:
Consumption Expenditures (C) $12,100 billion
Investment Expenditures (I) $2,800 billion
Government Expenditures (G) $3,200 billion
Exports (EX) $2,500 billion
Imports (IM) $2,760 billion
Depreciation $2,200 billion
___ 6. Gross Domestic Product (GDP) is equal to ________.
- $22,800 billion c. $25,560 billion
- $19,760 billion d. $17,840 billion
___ 7. Net exports are equal to __________.
- $5,260 billion c. –$260 billion
- – $560 billion d. $2,500 billion
