1. If the household units are the basic consuming units, the _ _ are the basic producing units.

1. A lumberyard is an example of an _ goods firm

**intermediate

1. When bananas are turned into banana chips, they become categorized as __ good.

1. It is _ sector that provides investment system which consequently siphons back the outflow created by savings.

1. . When imports are greater than exports, there is what we call a _ deficit

**trade

1. When public expenditures exceed tax collections, the government is operating under a _ _.

** Budget Deficit

1. There is ___ of trade when export value is greater than import value.

1. An increase in investments will cause an increase in production, increase in production will most likely increase household ___

**income

1. If there would be more inflows than outflows, it is expected that then _ will grow and expand.

1. Rent, wages, interests, and profit compromise the _ of production of the business firm

1. Cost of _ comprise the day-to-day expenses incurred by household units.

**living

1. The total sales generated by the business firm is called ___

**Business receipts

1. The inflow generated by the banking sector is called ___

1. That portions of the household sectors income which have not been spent for consumption is called____

**savings

1. 15. Land, labor, capital, and entrepreneurial ability are technically referred to in economics as _ _ _

**factors of production

1. Taxes comprise the outflows in the circular flow model created by the government sector. Specifically, these are classified as personal or __ taxes.

1. Public spending comes in many forms. When a government agency spends for gas expense or transportation allowance of staff monitoring certain government projects, these expenditures fall under ___ (acronym only-uppercase)

1. A factory that produces linen cloths are classified under __ goods firm.

**intermediate

1. Mergers and consolidates are firms that have undergone _ combination

1. Under a market economy, goods go to those who can pay for them. This is what is called the _____system.

1. The for whom to produce question is not just a physical distribution issue as it also involves a _ dimension. Hence, the affordability of the goods produced is also a concern.

1. Under a market system, production is mainly determined by the _ of the consumers

**demand

1. In economics, the only utility of money is its __. Hence, one of its primary function is to serve as a means of payment or as a medium of exchange.

1. Money has value because of its exchange or ___ power

**purchasing power

1. 25. Increase in production indicates ___ this is measured in terms of GNP/GDP level of a country