circular flow of income

Which of the following is NOT a factor of production?

• land
• labor
• capital
• goods and services

What do households provide to factor markets?

• land, labour, capital 

• money
• people
• income

In the circular flow model, the product market describes _____.

• firms that sell goods and services to households

• the government paying for public goods
• households selling their labor to businesses
• households receive income from businesses

What do businesses provide for consumers according to the circular flow model?

• goods and services
• only goods
• only services
• taxes

The missing label in the diagram is...?

• Government Sector

• Financial Sector

• Households

• Firms

The missing label in the diagram is...?

• Government Sector

• Financial Sector

• Households

• Firms

The missing label in the diagram is...?

• Government Sector

• Financial Sector

• Households

• Firms

The missing label in the diagram is...?

• Government Sector

• Financial Sector

• Households

• Firms

What is the role of firms?

• Investments in order to make more money

• Provide public goods and services

• Buy resources for production from households in exchange for those resources

• Earning income and spending it on goods and services

What are the 3 leakages in the Circular Flow Income Model?

• Financial Sector, Government Sector and Overseas Sector

• Savings, Taxation and Imports

• Savings, Taxation and Exports

• Investment, Government Spending & Exports