Part II: Applying the Model

Directions: Match the following description to the correct place on the Circular Flow Model.Identify with the letter (same ones used in #7).

1._____David buys a book at Barnes and Noble for $12.99.

2._____Amazon hires 100 new delivery drivers at its Columbus facility.

3._____The National Park Service creates two new campgrounds in Yellowstone National Park.

4._____Buttercup makes decorative masks for her independent business she runs on Etsy.

5._____Kyle pays his federal income tax.

6._____Resch's Bakery makes $10,000 from their donut sales.

7._____Jane posts her resume online featuring her marketing skills and experience.

8._____Mark and Janet budget 60% of their monthly spending towards groceries for their food truck business.

Part III: True/False

1._____Government buys resources and households buy resources.

2._____The product market determines the salary of the C.E.O. of a firm.

3._____The resource market determines the price per acre of farmland.

4._____Goods and services flows are clockwise.

5._____The product market determines the price of a computer.

6._____ Money flows are clockwise.

7._____ Firms sell resources in the resource markets.

8._____ Government buys products, and firms sell products.

9._____ The resource market determines the price of soda-bottling equipment.

10._____The resource market determines the price of soda.