Types Of Circular Flow Of Income! Trivia Quiz

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Types Of Circular Flow Of Income! Trivia Quiz

If you pretend to be knowledgeable about economics, then you would know about the circular flow of income. This is a diagram that shows how income comes in and goes out either on the household scale, the government scale, or the international scale. Take this quiz to find out more about the different types, or if you know them already, just refresh your memory!


Questions and Answers
  • 1. 
    How many models of the circular flow of income exist?
    • A. 

      Three

    • B. 

      Two

    • C. 

      One

    • D. 

      Four

  • 2. 
    In the two-party model, who is involved?
    • A. 

      Household and firms

    • B. 

      Household and overseas

    • C. 

      Household and government

    • D. 

      Government and firms

  • 3. 
    What does this model assume the household consume their money on?
    • A. 

      Investments

    • B. 

      Savings

    • C. 

      Goods and Services

    • D. 

      Nothing

  • 4. 
    Which parties are involved in the three-party model?
    • A. 

      Household, businesses and government

    • B. 

      Household, government and overseas

    • C. 

      Government, businesses and overseas

    • D. 

      Household, businesses and overseas

  • 5. 
    How does income move from households to the government in this model?
    • A. 

      Though investments

    • B. 

      Through savings

    • C. 

      Through taxes

    • D. 

      It doesn't move

  • 6. 
    Which sectors are involved in the four-party model?
    • A. 

      Which sectors are involved in the four party model?

    • B. 

      Household, firms, government and the foreign sector

    • C. 

      Household, government, loan sharks, firms

    • D. 

      Government, loan sharks, firm, foreign sector

  • 7. 
    All of the answers except one are alternative names for the foreign sector.
    • A. 

      External sector

    • B. 

      Overseas sector

    • C. 

      Exterior sector

    • D. 

      Rest of the world

  • 8. 
    There are five sectors involved in the five-party model. Which of the following is NOT part of the sectors
    • A. 

      Overseas

    • B. 

      Charity organizations

    • C. 

      Firms

    • D. 

      Government

  • 9. 
    Which sector is a new addition when compared to the rest of the sectors in the five-party model?
    • A. 

      Overseas

    • B. 

      Household

    • C. 

      Government

    • D. 

      Financial sector

  • 10. 
    What intermediary is involved in the financial sector?
    • A. 

      Charity organizations

    • B. 

      Banks and loan service companies

    • C. 

      Investment offices

    • D. 

      Household