Circular Flow Model Practice

Circular Flow Model Practice

12th Grade

19 Qs

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Circular Flow Model Practice

Circular Flow Model Practice

Assessment

Quiz

Business

12th Grade

Practice Problem

Easy

Created by

Shannon Lane

Used 11+ times

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19 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the two main sectors in the basic circular flow model?

Government and financial
Households and firms
Firms and the foreign sector
Households and the government

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the circular flow model, households provide what to firms?

Goods and services
Taxes
Factors of production
Investment capital

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What do firms provide to households in return for factors of production?

Imports
Subsidies
Income
Savings

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Injections in the circular flow of income include:

Savings, taxes, and imports
Investment, government spending, and exports
Consumption, imports, and savings
Taxes, investment, and subsidies

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Leakages in the circular flow of income include:

Government spending and taxes
Imports, taxes, and savings
Exports, investment, and consumption
Injections and income

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role does the financial sector play in the circular flow model?

It taxes businesses and households.
It provides exports and imports.
It channels savings into investment.
It produces goods and services.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is an example of a leakage?

Export payments
Business investment
Savings deposited in a bank
Government subsidies

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