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.
- 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
Questions: 65 | Attempts: 176 | Last updated: Mar 20, 2022
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