AP Macro Circular Flow Chart
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/14
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai | Chat |
|---|
No analytics yet
Send a link to your students to track their progress
15 Terms
Businesses sell good & Services to Households by ______.
The Product Market
What is an example of Good & Services
Phones, Clothes, food, furniture
Households sell resources to business by _______.
The Resource Market
What are the four categories of Resources?
Land, Labor, Capital, (Human Capital also) and Entrepreneurship.
If Households buy Goods & Services, they have to pay the product market money. What is the term for this situation?
Consumer Spending
The money made by the Product Market would make its way to their businesses. What is the term for money in this sense?
Revenue
Businesses use Revenue to pay for resources in the Resource Market. What is the term for this situation?
Cost of Production
Businesses specifically pay revenue to manufacturers who produce the Resource. Those manufacturers are earning_______.
Income
What specific type of income is earned from providing each of the four categories of resources?
Selling Land earns Rent
Selling Labor earns Wages
Selling Capital earns Interest
Selling Entrepreneurship earns Profit
Is the mall an example of the Product Market or the Resource Market and why?
Both: Some people are there to buy products and goods(Product Market), while other people are there to get jobs or income(Resource Market).
Which market do businesses Demand?
Resource Market
Which market do businesses Supply?
Product Market
Which market do Households Demand?
Product Market
Which market do Households Supply?
Resource Market