What Do You Know About Circular Flow Of Income?
As the name implies, the circular flow of income is a chart like structure which represents the income of a household, a city, or even a whole country. As its name implies, it looks like a circle. Let's test your knowledge on this subject by subjecting you to a few questions about it!
- 1.
![The flows of money and services run in…. - ProProfs]( "The flows of money and services run in….")
The flows of money and services run in….- A.
The same direction
- B.
Different directions
- C.
Parallel directions
- D.
Different directions but end up meeting
- 2.
![How many models of a circular flow income chart exist? - ProProfs]( "How many models of a circular flow income chart exist?")
How many models of a circular flow income chart exist?- A.
Three
- B.
One
- C.
Four
- D.
Five
- 3.
![What is the name of the last model? - ProProfs]( "What is the name of the last model?")
What is the name of the last model?- A.
Five sector model
- B.
Two sector model
- C.
One sector model
- D.
Three sector model
- 4.
![What is a leakage in a circular flow of income chart? - ProProfs]( "What is a leakage in a circular flow of income chart?")
What is a leakage in a circular flow of income chart?- A.
When money gets into the chart
- B.
When money from the chart is invested
- C.
When money from the chart is spent recklessly
- D.
When money leaves the chart
- 5.
![What constitute leakages? - ProProfs]( "What constitute leakages?")
What constitute leakages?- A.
Savings and Investments
- B.
Borrowing money
- C.
Lending money
- D.
Not doing anything at all with the money
- 6.
![What is an injection in a circular flow of income chart? - ProProfs]( "What is an injection in a circular flow of income chart?")
What is an injection in a circular flow of income chart?- A.
When a household loses money
- B.
When money gets into the chart
- C.
When money is used for expenditure
- D.
When money from the chart is invested
- 7.
![How many sectors exist in the circular flow of income chart? - ProProfs]( "How many sectors exist in the circular flow of income chart?")
How many sectors exist in the circular flow of income chart?- A.
One
- B.
Three
- C.
Five
- D.
Four
- 8.
![What constitute injections? - ProProfs]( "What constitute injections?")
What constitute injections?- A.
Investments
- B.
Savings
- C.
Borrowing of money
- D.
Lending money
- 9.
![All of these except one are part of the circular flow of income chart. - ProProfs]( "All of these except one are part of the circular flow of income chart.")
All of these except one are part of the circular flow of income chart.- A.
Household sector
- B.
Overseas sector
- C.
Government sector
- D.
International sector
- 10.
![When is a state of equilibrium reached? - ProProfs]( "When is a state of equilibrium reached?")
When is a state of equilibrium reached?- A.
When the leakages surpass the injections
- B.
When injections surpass the leakages
- C.
When the leakages and injections are same
- D.
When there are no leakages nor injections
Questions: 10 | Attempts: 131 | Last updated: Jun 27, 2019
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Sample QuestionThe two primary players in the circular flow model are
Questions: 10 | Attempts: 130 | Last updated: Jun 27, 2019
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Sample QuestionFirms in the economy produce goods/services by using inputs like
Questions: 10 | Attempts: 119 | Last updated: Jun 27, 2019
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Sample QuestionHow many models of the circular flow of income exist?
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