13) In the circular flow model which of the following owns the factors of production? A) only federal state and local governments B) only households C) only firms D) both firms and households E) firms households and all levels of government 14) In the circular flow model the factor markets are the markets in which A) consumption goods and services are bought and sold. B) government goods and services are provided. C) land labor capital and entrepreneurship are bought and sold. D) investment goods and services are bought and sold. E) governments impose all their taxes. 15) A money flow in the circular flow diagram is i) the government’s collection of taxes ii) Chevrolet’s production of SUVs iii) Nike’s payment of wages to its workers A) i and iii B) i ii and iii C) i only D) ii only E) ii and iii 16) A real flow in the circular flow diagram is i) a firm’s payments of wages to its workers. ii) a household’s purchase of a new car. iii) a farmer’s use of land to grow corn. A) ii and iii B) i only C) i and iii D) ii only E) i ii and iii 17) An example of a real flow in the circular flow diagram is A) a household’s supply of work effort at its new business. B) the government’s payment of wages to a soldier. C) Nike’s payment of wages to workers in China. D) your county’s collection of property taxes. E) a teacher’s salary at the local high school. 18) An example of a money flow in the circular flow diagram is A) a student’s payment of tuition to her university. B) the government’s operation of the court system. C) the government’s financing of the national debt. D) a firm’s production of goods to sell to a foreign country. E) a farmer’s use of land to grow wheat. 19) As the circular flow model shows the factors of production flow from A) firms to households through the factor market. B) households to firms through the factor market. C) firms to households through the goods market. D) households to firms through the goods market. E) the goods market through firms to the factor markets. 20) In the circular flow model the factors of production flow in the A) same direction as do the rents wages interest and profits. B) opposite direction as do the rents wages interest and profits. C) opposite direction as does the government. D) same direction as does the goods market. E) opposite direction as does the goods market. 21) In the goods market firms ________ and households ________. A) purchase goods and services; supply goods and services B) supply land labor capital and entrepreneurship services; hire land labor capital and entrepreneurship services C) pay rent wages interest and profit:; earn rent wages interest and profit D) supply goods and services; purchase goods and services E) hire land labor capital and entrepreneurship services; supply goods and services 22) In the factor market firms ________ and households ________. A) hire land labor capital and entrepreneurship services; purchase goods and services B) supply land labor capital and entrepreneurship services; hire land labor capital and entrepreneurship services C) pay rent wages interest and profit; earn rent wages interest and profit D) purchase goods and services; supply goods and services E) supply goods and services; purchase goods and services
