In the Circular Flow Model,there Are Two Types of Markets

question 161

Multiple Choice

In the circular flow model,there are two types of markets: the ________ market and the ________ market.

• A) producers; consumers
• B) households; firms
• C) service; goods
• D) goods; factor
• E) supply; demand

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Definitions:

Microeconomist

An economist who specializes in microeconomics, the study of the behavior of individuals and firms in making decisions on the allocation of limited resources.

Inflation Rate

The speed at which the generic pricing for goods and services elevates, undercutting the force of buying potential.

Macroeconomics

A branch of economics that studies how an economy as a whole functions, including total national income, total levels of employment, and how general price levels are determined.

Economy-Wide Phenomena

Broad trends or occurrences that affect the overall economic system, including inflation, unemployment, and national income.