NAME SECTION# PRINT LAST NAME, FIRST NAME In the circular flow model, the household sector goods and services in 8. markets. demands; product supplies; product demands; resource a. b. Appendix: C. d. supplies; resource Economics relies on mathematical students to apply their knowledge of arith graphing functions, and some geometry and analyze relationships between varis In the circular flow model, the business sector the factors of production (inputs) 9. in markets. demands; product supplies; product demands; resource supplies; resource a. Most of the mathematical calc subtraction, multiplication, or divisic (quantities). Students are often encc calculations. It may be necessary te example, to calculate average tota is equal to total cost divided by th produce 50 units of output, then Some students regard these rela the student's background and numbers and have difficulty k helpful. b. C. d. In the circular flow model, firms in the business sector product markets and demand; demand supply; supply demand; supply supply; demand 10. goods and services in inputs in resource markets. a. b. C. d. Sometimes, it is nec suppose the information th is provided, but you are as een tota SECTION# NAME PRINT LAST NAME, FIRST NAME THE CIRCULAR FLOW MODEL Fill in the missing information: The household sector includes consumers and workers (labor), as well as owners of other factors of production. The business sector includes many different organizations, from grocery stores to steel mills. market. 1. Consumers purchase goods and services in the roduct market. h 2. Workers obtain employment in the \Lesource market. Firms employ workers in the Vesource 3. market. 4. Firms earn revenue by selling output in the rduct Goods and Services market 5. Product Output Household Sector Business Sector 6. Lesource market aslamxo Payments Income The diagram above shows that business firms produce output, which becomes the goods and services purchased by households. The sale of output generates for business firms. The difference between total revenue and total cost is called The diagram above shows that business firms make payments to households, giving house income. The part of income used to purchase goods and services is called 9. The income that remains after consumers purchase output is called 10.