Circular Flow of Income Model & Macro Goal

Front

Identify the main 5 sectors in the Circular Flow Model

Back

Households, Firms, Financial, Government, Foreign

Front

The role of Households is to:

Back

Provide resources to Firms and spend money on goods and services

Front

The role of Firms in the economy is to:

Back

Produce goods and services and provide an income to households

Front

The leakage for the Financial sector is:

Back

Savings

Front

The leakage for the Government Sector is: Savings , Imports, Government Expenditure , Taxation

Back

Taxation

Front

The leakage of Foreign Sector is: Imports, Exports, Investment, Taxation

Back

Imports

Front

The injection for the Financial Sector is: Savings, Government Expenditure, Investment, Exports

Back

Investment

Front

The injection for the Government Sector is: Taxation , Investment , Government Expenditure , Exports

Back

Government Expenditure

Front

The injection for the Foreign sector is: Investment , Exports, Imports, Government Expenditure

Back

Exports

Front

A teenager opens a new bank account. Which flow does this belong to? Options: Investment, Providing an income to Households, Consumer Expenditure, Savings

Back

Savings