EC 202 Introduction To Macroeconomics EXAM 1 PRACTICE
QUESTIONS AND ANSWERS 2025 Michigan State University
In the Circular flow model, income flows from to .
a. The Product Market; Firms
b. Households; The Product Market
c. Firms; The Resource Market
d. The Resource Market; Household
(d) In the circular flow model, money flows clockwise. Income is what
workers receive for producing goods and services. Thus, income =lows
from the resource market to households
, 2. (a) Increases in the Demand Curve are graphically shown as shifts to the
right of the original Demand Curve. That is why Option A is the correct
answer.
3. (b) Changes in quantity demanded are always movements along the demand
curve.
QUESTIONS AND ANSWERS 2025 Michigan State University
In the Circular flow model, income flows from to .
a. The Product Market; Firms
b. Households; The Product Market
c. Firms; The Resource Market
d. The Resource Market; Household
(d) In the circular flow model, money flows clockwise. Income is what
workers receive for producing goods and services. Thus, income =lows
from the resource market to households
, 2. (a) Increases in the Demand Curve are graphically shown as shifts to the
right of the original Demand Curve. That is why Option A is the correct
answer.
3. (b) Changes in quantity demanded are always movements along the demand
curve.
