Circular Flow of Income Diagram - Economics

What are the two principal components of the economy in the basic circular flow of income model?

• Government and Firms

• Firms and Households

• Households and Foreign Sector

• Government and Households

Which of the following is NOT a way that National Income is calculated?

• National Income

• National Expenditure

• National Savings

• National Output

In the circular flow of income, what does 'W' stand for?

• Welfare

• Withdrawals

• Wages

• Wealth

Which of the following is an example of an injection into the circular flow of income?

• Savings

• Taxes

• Imports

• Investment

What additional components are added to the circular flow of income in a more realistic model?

• Imports and Exports

• Savings and Taxes

• Wages and Rent

• Government and Foreign Sector