Circular Flow questions
According to the diagram on 10.5, in which markets do businesses give money-income payments to households in exchange for their productive resources?
Some markets would be banks.
In which markets do households give money payments to businesses in exchange for goods and services?
Some markets would be grocery stores, restuarants, car wash places and so on.
What did Econos represent in the simulation?
They represented finished products that the factories made.
Give an example of a productive resource that households sell to the government.
A productive resource I sell to the government is my labor.
Give an example of a good or service that businesses sell to government.
An example of a good would be weapons that businesses sell to the government for defense.
Give an example of a good or service that government provides to households in exchange for money payments, mainly taxes.
The government provides school as a service to the households.
Give an example of a good or service that government provides to businesses in exchange for money payments, mainly taxes.
Government provides loans and protection to businesses.
How do individuals and families in households depend on people in business?
The business creates products that households want and sell it to them.
How do businesses depend on individuals and families in households?
They depend on the households money so they could buy products from the businesses.
What is the role of government in the circular flow of the economy?
They collect taxes
What is the one main conclusion that you can draw from taking part in this activity that will benefit you in the future?
My conclusion is that you have to be careful when making deals with others because sometimes the person could be lying.
