Q uiGK Quiz
1. The resource market is where:
a. households sell products and businesses buy products.
b. businesses sell resources and households sell products.
c. households sell resources and businesses buy resources (or the services of resources).
d. businesses sell resources and households buy resources (or the services of resources).
2. Which of the following would be determined in the product market?
a. a manager's salary b. the price of equipment used in a bottling plant c. the price of 80 hectares of farmland d. the price of a new pair of athletic shoes
3. In this circular flow diagram:
a. money flows counterclockwise.
b. resources flow counterclockwise.
c. goods and services flow clockwise.
d. households are on the selling side of the product market.
4. In this circular flow diagram:
a. households spend income in the product market.
b. firms sell resources to households.
c. households receive income through the product market.
d. households produce goods.
chapter two • the economic problem: scarcity, wants, and choices
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