Circular flow of income

What is the primary role of the household sector in the economy?

• Basic consumption

• Industrial production

• Government regulation

• Exporting goods.

Which of the following is a function of the household sector?

• Providing labor for the business sector

• Regulating trade policies

• Manufacturing goods

• Setting interest rates.

Which of the following is a function of the business sector?

• Create and sell goods and services

• Provide free education

• Offer healthcare services

• Manage public transportation

In the circular flow of income, what does the Business Sector provide to the Household Sector?

• Economic resources

• Income

• Consumption

• Output

Fill in the blank: In the circular flow of income, the Household Sector receives _______ from the Business Sector.

• A) Economic resources

• B) Income

• C) Consumption

• D) Output

What does the letter 'O' represent in the circular flow of income?

• Output

• Organization

• Ownership

• Obligation

In the circular flow diagram, which entity is responsible for purchasing goods and services?

• Firms

• Households

• Government

• Banks

What is the main function of the financial sector in the circular flow model?

• To provide goods

• To regulate trade

• To facilitate savings and investments

• To enforce laws.

Explain the role of the household sector in the economy. (Fill in the blank) The household sector provides ________ to businesses.

• A) Capital

• B) Labor

• C) Goods

• D) Services

In the circular flow of income model, which sector provides economic resources such as land, labor, capital, and enterprise?

• Business Sector

• Government Sector

• Household Sector

• Foreign Sector