Year 8 Circular Model Quiz Week 2

What does interdependence mean with regards to the circular flow?

• It is a one-way relationship between two sectors

• It is a two-way relationship between two sectors

• It is when two sectors are reliant on one another

• It is when one sector dominates another sector

Decisions made in a market economy (free economy) are usually dominated by

• Government

• Financial Institutions

• Households & Businesses

• leakages and injections

What is sold in the labour market

• Skills, Experience & Products

• Experience, Skills & Knowledge

• Experience, Knowledge & Goods

• Goods and services

Governments influence markets by

• taxation

• manipulating the value of the Australian Dollar

• providing infrastructure

• providing medical and education services

What are the key questions in the economy?

• How to produce

• When to produce

• What to produce

• For whom to produce

The law of supply says

• As price increases the supply will increase

• As price decreases the supply will increase

• As price increases the supply will decrease

The Law of Demand says

• As price increases demand increases

• As price increases demand decreases

• As price decreases demand decreases

Which sectors are in the two flow circular flow

• Consumers and Finance

• Consumers and Producers

• Consumers and Government

• Consumers and External sector

Which sectors are included in the four sector circular flow model?

• Government

• Financial Sector

• Consumers and Producers

• External Sector

The Circular Flow has two main flows which are

• Money

• Goods and Services

• Stocks and Shares

• Agriculture and Commerce