The Principal Of Circular Flow Quiz
This is a quiz that will test your knowledge on the principal of circular flow.
Questions and Answers
- 1.
Which of the following is part of the circular flow diagram
- A.
Education
- B.
Resources
- C.
Cooperations
- D.
Family
Correct Answer
B. ResourcesExplanation
resources can be found on the circular flow diagram. It is part of labor and spending.Rate this question:
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- 2.
Which of the following is attached to households on the circular flow diagram
- A.
Goods and services
- B.
Farming
- C.
Cooperations
- D.
Stock market
Correct Answer
A. Goods and servicesExplanation
goods and services comes after as well as into households on the circular flow path.Rate this question:
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- 3.
BLANK is part of the household "goods and services" section of the diagram
Correct Answer
wages and products
friends and families
census taking
manufacturingExplanation
wages and products are the components of "goods and services". It is the responsibility of the "goods and services" to add wages and products for households to consumeRate this question:
- 4.
What are the firms responsible putting out into the market?
- A.
Resources
- B.
Agriculture
- C.
Goods and services
- D.
Household spending
Correct Answer
C. Goods and servicesExplanation
"goods and services" are put out into the economy for households to consume, in the form of wages and products.Rate this question:
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- 5.
Circular flow only moves in one direction, with little to no leakages in the market.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
money comes into and out of the market constantly, whether people are pulling money out of banks, government is taking tax revenue, or currency is being added. Circular flow also must move backward and forward in order to prevent the economy from backing up.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Aug 16, 2023Quiz Edited by
ProProfs Editorial Team -
Mar 22, 2010Quiz Created by
Arcaffar
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