The Circular Flow of Income - SS3 Economics Past Questions and Answers - page 1
1
Who supplies resources like labour, land, and capital in the circular flow of income?
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A
Businesses
B
The government
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C
Households
D
Investors
2
What do businesses use to produce goods and services?
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A
Money
B
Resources
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C
Taxes
D
Regulations
3
What do businesses receive in exchange for the goods and services they produce?
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A
Resources
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B
Dividends
C
Wages
D
Money
4
What do businesses do with the revenue they receive from selling goods and services?
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A
Invest in their business or pay dividends to their owners
B
Give it to the government
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C
Spend it all on salaries for employees
D
Keep it in a savings account
5
What does the circular flow of income create in the economy?
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A
A stable cycle of income, expenditure, and production
B
A fluctuating cycle of income, expenditure, and production
C
A cycle of debt and bankruptcy
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D
A cycle of unemployment and poverty
7
What do households supply to businesses in the circular flow of income?
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8
What is the purpose of the circular flow of income?
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