The Economic and Business Environment

Which part of the five-sector circular flow of income model focuses on imports and exports?

• Government sector

• Financial sector

• Overseas sector

• Business sector

Which type of market do we buy most of our goods and services from?

• Labour

• Retail

• Financial

• Stock

Which of the following are all examples of leakages from the circular flow of income model?

• Expenditure, savings, taxation

• Exports, taxation, investment

• Savings, taxation, imports

• Exports, savings, investment

A business has 75 employees. What would it be classified as?

• Micro

• Small

• Medium

• Large

Which of the following are all examples of injections from the circular flow of income model?

• Expenditure, savings, taxation

• Exports, taxation, investment

• Savings, taxation, imports

• Investment, expenditure, export

Which part of the business cycle is consumer spending and business investment at their lowest levels?

• Expansion

• Contraction

• Boom

• Recession

The cyclical fluctuations in the general level of economic activity

• Business cycle

• Five sector circular flow

• Investment

• Globalisation

Which phase of the business cycle would Point X be?

• Boom

• Expansion

• Recession

• Peak

A joint dependence between participants in an economy; that is, the reliance of consumers, workers, businesses and governments on each other

• Globalisation

• Interdependence

• Investment

• Circular flow

Which sector is made up of consumers?

• Financial

• Government

• Household

• Overseas