Order instructions

__ 1.  In the circular flow model, the business sector _____ goods and services in _____             markets.

1.          demands; product                               c.         supplies; product
2.          demands; resource                              d.         supplies; resource

___ 2.  In the circular flow model, the household sector _____ goods and services in _____          markets.

1.          demands; product                               c.         supplies; product
2.          demands; resource                              d.         supplies; resource

___ 3.  In the circular flow model, the business sector _____ the factors of production (inputs) in _____ markets.

1.          demands; product                               c.         supplies; product
2.          demands; resource                              d.         supplies; resource

___ 4.  In the circular flow model, the household sector _____ the factors of production (inputs) in          _____ markets.

1.          demands; product                               c.         supplies; product
2.          demands; resource                              d.         supplies; resource

___ 5.  Which of the following would best explain an increase in the demand for jeans?

1. A decrease in income, assuming jeans are normal goods
2. A decrease in the popularity of jeans
3. An increase in the number of schools that allow students to wear jeans
4. 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 ________.

1.          $22,800 billion                                    c.         $25,560 billion
2.          $19,760 billion                                    d.         $17,840 billion

___ 7.  Net exports are equal to __________.

1.          $5,260 billion                                      c.         –$260 billion
2.          – $560 billion                                      d.         $2,500 billion