Year 8: The Circular Flow Model!

What is a traditional economy?

• A system that relies on customs, history, and time-honoured beliefs.

• A socialist economic system in which production and distribution of goods and services are controlled by the government.

• A capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.

• The system of trade and industry by which the wealth of a country is made and used.

What is a command economy?

• A socialist economic system in which production and distribution of goods and services are controlled by the government.

• A capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.

• The system of trade and industry by which the wealth of a country is made and used.

• A system that relies on customs, history, and time-honoured beliefs.

What is a market economy?

• A capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand.

• The system of trade and industry by which the wealth of a country is made and used.

• A system that relies on customs, history, and time-honoured beliefs.

• A socialist economic system in which production and distribution of goods and services are controlled by the government.

What is a retail market?

• The market for the sale of goods or services to consumers rather than producers or intermediaries

• The supply of and demand for labor, in which employees provide the supply and employers provide the demand.

• Any marketplace where the trading of securities occurs.

• A place where two parties can gather to facilitate the exchange of goods and services.

What is a labour market?

• The supply of and demand for labor, in which employees provide the supply and employers provide the demand.

• Any marketplace where the trading of securities occurs.

• A place where two parties can gather to facilitate the exchange of goods and services.

• The market for the sale of goods or services to consumers rather than producers or intermediaries

What is a financial market?

• Any marketplace where the trading of securities occurs.

• A place where two parties can gather to facilitate the exchange of goods and services.

• The market for the sale of goods or services to consumers rather than producers or intermediaries

• The supply of and demand for labor, in which employees provide the supply and employers provide the demand.

What is the Circular Flow Model?

• An economic model that shows the flow of money through the economy.

• A place where two parties can gather to facilitate the exchange of goods and services.

• The amount of physical, mental, and social effort used to produce goods and services in an economy.

• An institutional sector in national accounts encompassing all households.

What is a market?

• A place where two parties can gather to facilitate the exchange of goods and services.

• The amount of physical, mental, and social effort used to produce goods and services in an economy.

• An institutional sector in national accounts encompassing all households.

• An economic model that shows the flow of money through the economy.

What is labour?

• The amount of physical, mental, and social effort used to produce goods and services in an economy.

• An institutional sector in national accounts encompassing all households.

• An economic model that shows the flow of money through the economy.

• A place where two parties can gather to facilitate the exchange of goods and services.

What is the household sector?

• An institutional sector in national accounts encompassing all households.

• The part of the economy made up by companies.

• The part of an overall economy that is primarily made up of money markets, banking institutions and brokers.

• The part of the economy that is controlled or funded by the government.