Question

directions: study the flowchart and information, read each question, and choose the best answer.flow of money, goods, and servicesin the u.s. economyfactors of production are the items used to complete a production process. these factors typically fall into three main categories—land, labor, and capital. at times, a fourth category, defined as entrepreneurship or management, also appears alongside these. in order for a business to achieve success, it must maintain a healthy balance of these factors of production.the flowchart shows the flow of money, as well as goods and services, throughout the u.s. economy. in this flowchart, households own all of the factors of production. the people in these households sell their labor, land, and capital to firms. in exchange for these factors of production, the people receive wages, rent, and profits.9. suppose you own a company that manufactures lawnmowers. which of the following factors of production would fall under the category of labor?a. money contributed to shareholders in your companyb. your ability to manage your employees effectivelyc. the work of your employeesd. the property on which your company is located10. which of the following factors of production is your willingness to start your own business and manufacture products?the willingness to start ones own business and manufacture products is an example ofa. laborb. capitalc. profitd. entrepreneurship11. which of the following actions generates income for firms?a. buying goods and services from people in householdsb. selling goods and services to people in householdsc. buying factors of production from householdsd. avoiding the markets for goods and services and factors of production12. based on the information and the flowchart, which of the following statements can you determine to be true?a. money, goods, and services move in the same direction throughout this economic system.b. after receiving wages, rent, and profit, firms use these items to purchase factors of production.c. all transactions between firms and households contribute to the nations gdp.d. firms control all of the production inputs in this economic system.

Explanation:

Question 9:

Labor refers to human work input. Employee work is labor, while shareholder money is capital, management ability is entrepreneurship, and property is land.

Question 10:

Willingness to start a business and manage production falls under entrepreneurship, one of the factors of production.

Question 11:

Firms earn income by selling goods/services to households; buying factors or goods costs them money, avoiding markets does not generate income.

Question 12:

All flows (revenue, income, spending) equal GDP, so firm-household transactions contribute to GDP. Money and goods flow in opposite directions, firms use income to buy production inputs, and households own production inputs.

Answer:

1. C. the work of your employees
2. D. entrepreneurship
3. B. selling goods and services to people in households
4. C. All transactions between firms and Households contribute to the nation's GDP.