How Much Do You Know About Circular Flow Of Income? Trivia Quiz

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How Much Do You Know About Circular Flow Of Income? Trivia Quiz

If you were ever attentive in your economics class, then you'd know what a circular flow of income is. We know how hard it is to study sometimes. So use this fun quiz to pass time and to refresh your memory as well.


Questions and Answers
  • 1. 
    The two primary players in the circular flow model are
    • A. 

      People and Stores

    • B. 

      Households and Businesses

    • C. 

      Businesses and People

    • D. 

      Households and Schools

  • 2. 
    What drives the circular flow model?
    • A. 

      Success

    • B. 

      Taxes

    • C. 

      Monetary policy

    • D. 

      Profit

  • 3. 
    What do businesses provide for consumers according to the circular flow model?
    • A. 

      Goods and services

    • B. 

      Only goods

    • C. 

      Only services

    • D. 

      Taxes

  • 4. 
    Which of the following is not an injection into the circular flow of national income?
    • A. 

      The purchase of a domestically produced good by a foreign company

    • B. 

      Government taxation

    • C. 

      Government expenditure

    • D. 

      Government salaries paid to civil servants

  • 5. 
    In the circular flow model, how do household contribute to the government?
    • A. 

      Goods and services

    • B. 

      Income

    • C. 

      Taxes

    • D. 

      Grants

  • 6. 
    Which of the following does not represent a leakage or a withdrawal in the circular flow of income?
    • A. 

      Taxes

    • B. 

      Imports

    • C. 

      Savings

    • D. 

      Government expenditures

  • 7. 
    What do households provide to the resource market?
    • A. 

      Land, Labor, Capital

    • B. 

      Money

    • C. 

      People

    • D. 

      Income

  • 8. 
    National income is at its equilibrium level when
    • A. 

      Imports equal exports

    • B. 

      Savings equal investment

    • C. 

      Injections equal withdrawals

    • D. 

      Government revenue equals government expenditure

  • 9. 
    In the circular flow model, financial institutions are included with the
    • A. 

      Government

    • B. 

      Resource market

    • C. 

      Product market

    • D. 

      Firms

  • 10. 
    Which one of the following is an injection into the circular flow of income?
    • A. 

      Personal income tax

    • B. 

      Government purchases of factor services

    • C. 

      Imports

    • D. 

      Business tax