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Circular flow of income

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following is a phase of Circular flow?

a)

Generation phase

b)

Distribution phase

c)

Disposition phase

d)

All of these

2.

Which of the following is not an example of flow variable?

a)

Number of births during a year

b)

National wealth

c)

National income

d)

wheat produced during a year

3.

Which of the following is not considered a factor income?

a)

rent

b)

wages

c)

gifts from abroad

d)

profit

4.

Two sector economy consists of:

a)

households, firms

b)

firms, foreign sector

c)

households, government

d)

firms, government

5.

Stock variable is defined as a variable which is:

a)

measured over a period of time

b)

measured at a particular point of time

c)

cannot be measured

d)

None of these

6.

Losses are classified as:

a)

stock variable

b)

flow variable

c)

either stock or flow

d)

neither stock nor flow

7.

Real flow is also known as:

a)

nominal flow

b)

physical flow

c)

money flow

d)

both nominal and physical flow

8.

Which of the following is the consumption sector?

a)

households

b)

firms

c)

foreign

d)

government

9.

Money flow involves exchange of:

a)

goods and services

b)

gifts

c)

money

d)

none of these

10.

Real flow refers to the flow of factor services from ....... to........ .

a)

firms to households

b)

households to firms

c)

firms to government

d)

household to government

11.

In a closed economy, ........................... is not included?

a)

households

b)

firms

c)

government

d)

Foreign sector

12.

Which of the following is not a flow?

a)

Capital

b)

Income

c)

Investment

d)

Depreciation

13.

which of the following is a stock?

a)

wealth

b)

saving

c)

exports

d)

profits

14.

Which of the following diagram represents real flow?

a)
b)
c)
d)
15.

Circular flow of income is correctly represented in the diagram:

a)
b)
c)
d)