A startup company produces luxury furniture. It purchases wood from a local lumber mill and turns the wood into tables, chairs, and desks. Once the furniture is finished, trucks take it to a local mall where it is sold at a specialty store. Customers come from all over the state to buy new pieces of furniture that arrive each month.Which element of the story represents a product market in the circular flow model?A.The customers who shop at the mallB.The furniture companyC.The lumber millD.The specialty store in the mall

In the circular flow model, which part of the economy would provide materials to businesses?A.HouseholdsB.Resource marketsC.BusinessesD.Product marketsSUBMITarrow_backPREVIOUS

Which statement best illustrates the relationship between three different elements of the circular flow of products?A.Product markets create new goods for households, which purchase them directly from businesses.B.Resource markets sell materials to businesses, which use them to make goods sold to households.C.Businesses provide goods to resource markets, which sell them directly to households.D.Households design new products for businesses, which market them using resource markets.

A person works as a cashier in a major supermarket. She sells vegetables to customers, including local restaurants that use these ingredients to make meals for their customers. The supermarket pays the cashier wages for her work, which she uses to buy her own groceries and pay bills.When the supermarket in the passage sells vegetables to restaurants, it takes on which role in the circular flow of goods?A.Product marketB.Household marketC.Resource marketD.Business marketSUBMITarrow_backPREVIOUS

Which situation best illustrates the role of households in the circular flow of goods?A.A website sells T-shirts promoting a popular band.B.A factory produces parts used to make new cars.C.A family buys a new TV at an electronics store.D.A company develops a new brand of smartphone.

Businesses play a role in the circular flow of goods by:A.creating the goods sold at product markets.B.offering labor to product markets for a fee.C.providing natural resources to resource markets.D.consuming products created in households.