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Circular Flow Infographic Activity (Answer Key)
Economists create models to illustrate economic activity. The circular flow model shows us how
households, businesses, and the government interact with one another in the economy. Each of these
three parts of the economy are affected by the actions of the others. This activity will help you analyze
these relationships using the infographic poster that accompanies it.
Who’s in the flow?
Use the information from your infographic poster to answer the following questions. For each of the
scenarios, you should identify:
a. the role of the person: buyer OR seller; the market: resource OR product
b. the sector: household OR firm
c. the sector receiving the money payment: household OR firm
1. Swooshy Sports sells a soccer ball to James. What can you tell about the transaction?
a. James was the ___buyer_______ of the soccer ball in the __product__ market.
b. James is part of the __household__ sector.
c. The money used in this transaction was paid to the __firm__ sector.
2. Margie has a large rural property where she grows pine trees and sells them to Big Paper
Company. What can you tell about the transaction?
a. Margie was the __seller__ of the land and trees in the _resource__ market.
b. Margie is part of the __household__ sector.
c. The money payment in this transaction went to the _household__ sector.
What’s in the flow?
Use the information from your infographic poster to answer the following questions. For each of the
scenarios, you should identify:
a. the market: resource OR product
b. the factor of production: land, labor, capital, OR entrepreneurship
c. the product: good OR service
1. Shayla has her own business selling tacos at a stand in a local park. For her taco stand, she grows
tomatoes in a small garden plot she rents from a man named Jack.
a. Shayla rents her garden plot in the _resource_ market.
b. The garden plot is a __land___________ resource.
c. A taco Shayla sells at her stand is a __good_____.
2. Show Me Productions Inc. just announced a big hit show will play at the Grand Theater in July.
Alec works at the snack bar inside the theater and says he can help you buy tickets to the show.
a. Show Me Productions Inc. will sell tickets to you in the ___product___ market.
b. Alec is an example of a __labor___ resource.
c. Show Me Productions Inc. is selling you a __service__.