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Circular Flow Model - In the context of McDonalds NZ

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

What are the two real flows that go betweent the household sector and the producer sector?

a)

Goods and services

b)

Resources

c)

Imports

d)

Exports

2.

What are the two money flows that go between the household and producer sector?

a)

Resources

b)

Taxes

c)

Income

d)

Consumer Spending (consumption spending)

3.

What is the money flow between the household sector and the financial sector?

a)

Savings

b)

Investment

c)

Income

d)

Tax Receipts

4.

What is the money flow between the Financial Sector and the Producer Sector?

a)

Savings

b)

Income

c)

Investment

d)

Interest

5.

What is the money flow betweent the Household Sector and the Government Sector?

a)

Direct Tax (PAYE)

b)

Indirect Tax

c)

Subsidy

d)

GST

6.

What is the money flow between the Government Sector and the Household Sector?

a)

Direct Tax (PAYE)

b)

Indirect Tax

c)

Subsidies

d)

Transfer Payments

7.

What is the money flow between the Government Sector and the Producer Sector

a)

Direct Tax

b)

Indirect Tax

c)

Subsidies

d)

Transfer Payments

8.

What is the name of the money flow between the Producer Sector and the Government Sector?

a)

Subsidies

b)

Income

c)

Export Receipts

d)

Indirect Tax

9.

What are the real flows between the Overseas Sector and the Producer Sector?

a)

Imports

b)

Exports

c)

Import Payments

d)

Export Receipts

10.

What are the real flows between the Producer Sector and the Overseas eSector?

a)

Goods and Services

b)

Imports

c)

Exports

d)

Resources

11.

Transfer Payments can only be paid to Household Sector

a)

True

b)

False

12.

Which of these is an example of an indirect tax?

a)

GST

b)

PAYE (pay as your earn)

13.

An example of a transfer payment could be?

a)

A welfare benefit

b)

Paying a Teacher

14.

A subsidy is paid by consumers to the government

a)

True

b)

False

15.

Consumption Spending is a real flow

a)

true

b)

false

16.

Resources are a real flow

a)

true

b)

false

17.

Subsidies are a money flow

a)

True

b)

False

18.

Investment Payments go from financial sector where?

a)

Household Sector

b)

Government Sector

c)

Producer Sector

d)

Overseas Sector

19.

Only the Household Sector can make savings

a)

True

b)

False

20.

Resources flow from the ________ Sector to the Producer Sector

a)

Household

b)

Government

c)

Overseas

d)

Financial

21.

Imports and Exports are Real Flows

a)

True

b)

False

22.

Which sector are university students operate in when they buy a big mac?

a)

Household

b)

Producer

c)

Government

d)

Overseas

23.

Which of the following is an example of a firm operating in the financial sector?

a)

Westpac

b)

McDonalds

c)

Families

d)

University students

24.

Labour is an example of what?

a)

A resource

b)

An investment

c)

A saving

25.

A Big Mac is an example of what?

a)

A good / service

b)

A resource

c)

An import

d)

An export