
The Circular Flow Diagram Unpacked: Understanding Economic Interactions

Interactive Video
•
Business, Social Studies, Economics
•
9th - 10th Grade
•
Hard

Patricia Brown
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Who are the main participants in the circular flow diagram?
Only households and businesses
Only businesses and the government
Households, businesses, and the government
Only the government
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the factor market primarily concerned with?
The distribution of government services
The exchange of land, labor, and capital
The sale of finished goods
The regulation of taxes
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the example with Mr. Cian, what does he purchase?
A house
A computer
A smartphone
A new car
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does money return to Mr. Cian in the circular flow?
In the form of his salary
As a gift from businesses
Through government subsidies
Through a loan
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the first step in the circular flow of money?
Payment of wages
Investment in the stock market
Spending in the goods and services market
Government taxation
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are the non-monetary items moving through the economy?
Only capital
Land, labor, and capital
Only services
Only goods
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What role does capital play in the circular flow?
It is a form of household income
It is a type of tax
It is an investment by households in businesses
It is a form of government revenue
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