121. The money income of households consists of the sum of:
A) wages plus salaries.
B) consumption expenditures plus profits.
C) wages plus rents plus interest plus profits.
D) consumption expenditures plus costs of resources.
122. Which of the following would be primarily determined in the resource market?
A) the price of compact discs
B) the wage rates for electricians
C) the number of automobiles produced
D) the amount of money in circulation
123. The fact that expenditures on products and payments to owners of resources used to produce those products flow in opposite directions is known as:
A) roundabout production.
B) a barter economy.
C) a pure economy.
D) the circular flow of income.
Use the following to answer questions 124-130:
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124. Refer to the above figure. If box B represents the resource market and flow (3) represents money income, then:
A) box A is the product market and box C is households.
B) box C is the product market and box A is households.
C) box D is the product market and box C is households.
D) box C is the product market and box D is households.
125. Refer to the above figure. If box A represents businesses and flow (7) represents goods and services, then:
A) box D is the product market and box B is the resource market.
B) box D is the product market and box B is households.
C) box B is the product market and box C is households.
D) box C is the product market and box B is the resource market.
126. Refer to the above figure. If flow (1) is the cost businesses pay to the resource market, then:
A) (2) is the flow of productive resources.
B) (4) is the flow of goods and services.
C) (6) is the flow of money income.
D) (7) is the flow of revenue.
127. Refer to the above figure. If box D represents the product market and flow (6) represents consumption expenditures, then box C is:
A) households, flow (7) is revenue, and flow (8) is goods and services.
B) businesses, flow (7) is revenue, and flow (8) is goods and services.
C) households, flow (7) is goods and services, and flow (8) is revenue.
D) businesses, flow (7) is goods and services, and flow (8) is revenue.
128. Refer to the above figure. If box A represents businesses and box B represents the resource market in this circular flow model, then the real flow of goods, services, and economic resources would be represented by flows:
A) (1), (3), (6), and (8).
B) (7), (5), (4), and (2).
C) (1), (2), (3), and (4).
D) (5), (6), (7), and (8).
129. Refer to the above figure. If box A represents businesses and box D represents the product market in this circular flow model, then money flow in the model would be represented by:
A) (1), (2), (3), and (4).
B) (5), (6), (7), and (8).
C) (1), (3), (6), and (8).
D) (7), (5), (4), and (2).
130. Refer to the above figure. If you know that flow (8) is revenues and flow (4) is economic resources (land, labor, capital, and entrepreneurial ability), then box:
A) A is the resource market and box B is the product market.
B) B is the resource market and box A is the product market.
C) C is the product market and box B is the resource market.
D) D is the product market and box B is the resource market.
