Question : 21) Refer to Figure 2-17. In the circular flow diagram, : 1244994

21) Refer to Figure 2-17. In the circular flow diagram, who are economic agents A and who are economic agents B?

A) A = firms; B = households

B) A = households; B = firms

C) A = households; B = factor markets

D) A= firms; B = product markets

Figure 2-18

22) Refer to Figure 2-18. One segment of the circular flow diagram in the figure shows the flow of funds from economic agents E to market F. Who are economic agents E and what is market F?

A) E = households; F = product markets

B) E = firms; F = product markets

C) E = households ; F = factor markets

D) E = firms; F = factor markets

23) Refer to Figure 2-18. One segment of the circular flow diagram in the Figure shows the flow of funds from market F to economic agents G. The funds represent spending on goods and services. What is market F and who are economic agents G?

A) F = factor markets; G = households

B) F = product markets; G = households

C) F = factor markets; G = firms

D) F = product markets; G = firms

24) All of the following are examples of spending on factors of production in the circular flow model except

A) Bima hires two students to work at his ice-cream store.

B) “Get Fit Together” purchases 3 new treadmills for its gym.

C) Iris buys a dozen roses for her mother’s birthday.

D) The Banyan Tree rents a much larger property so that it can add a restaurant to its facilities.

25) Which of the following is an example of spending on factors of production in the circular flow model?

A) Carolina has her nails done before her 20th high school class reunion.

B) Giorgio buys snow cones for his youth soccer team after each game.

C) Stevie trades in his old cell phone for a newer model.

D) Arlisha purchases a cotton candy machine for her concession stand at the state fair.

26) Which of the following is an example of spending on goods and services in the circular flow model?

A) Belinda purchases a new computer for her tax-preparation business.

B) Javier buys 800 square feet of wood flooring for his vacation home.

C) Celeste buys fresh herbs at the farmers’ market to use in her restaurant.

D) Timmy purchases a new examination table for use in his veterinary clinic.

27) “An Inquiry into the Nature and Causes of the Wealth of Nations” published in 1776 was written by

A) John Maynard Keynes.

B) Karl Marx.

C) Alfred Marshall.

D) Adam Smith.

Figure 2-19

28) Refer to Figure 2-19. Which two arrows in the diagram depict the following transaction: LaDonna sells 20 pairs of sunglasses at the Oakley store.

A) J and M

B) J and G

C) K and M

D) K and G

29) Refer to Figure 2-19. Which two arrows in the diagram depict the following transaction: Dorian Gray hires “Wild Oscar,” a professional portrait artist, to paint his picture.

A) J and M

B) K and G

C) K and M

D) J and G

30) Refer to Figure 2-19. Which two arrows in the diagram depict the following transaction: Barney earns $250 for selling scissors and razors to Floyd’s Barber Shop.

A) J and M

B) K and G

C) K and M

D) J and G