Year 10 Economics - Circular Flow of Income

The missing label in the CFI diagram is...?

• Government Sector

• Financial Sector

• Households

• Firms

The missing label in the CFI diagram is...?

• Government Sector

• Financial Sector

• Households

• Firms

The missing label in the CFI diagram is...?

• Government Sector

• Financial Sector

• Households

• Firms

The missing label in the CFI diagram is...?

• Government Sector

• Financial Sector

• Households

• Firms

The missing label in the CFI diagram is...?

• Investments

• Financial Sector

• Savings

• Taxes

The missing label in the CFI diagram is...?

• Investments

• Financial Sector

• Savings

• Taxes

The missing label in the CFI diagram is...?

• Investments

• Financial Sector

• Savings

• Taxes

Explain the arrow

• Firms pay for labour in the form of income

• Firms provided goods & services

• Households buy goods & services

• Households provide labour to Firms

Explain the arrow

• Firms pay for labour in the form of income

• Firms provided goods & services

• Households buy goods & services with their income

• Households provide labour to Firms

Explain the arrow

• Households save part of their income (deposit it banks)

• Firms borrow money from the bank to expand (investment)

• Households pay tax to the Government

• Government spends money on public works