Circular Flow Model Key Terms

Match the terms with their correct descriptions. You get two chances to match each pair.

Circular Flow Model


Factor Market

Goods and Services Market


Private Sector

Public Sector

Shows how goods and services flow in exchange for money

Individual who assumes the risk of an economic enterprise

Where businesses purchase items needed for production

Where goods and services are exchanged for money by end users

Money or equipment used to produce goods and services

Part of the economy that Includes only households and most businesses

Part of the economy that includes government