WorksheetsCircular Flow of Income - 2 Sector Model
Total questions: 30
Worksheet time: 37mins
The Circular Flow of Income - 2 Sector Model has two stakeholders. Who are they?
Businesses & governments
Consumers and suppliers
Consumers and governments
Households and businesses
True or False.
Consumers and Producers respond to and influence each other in the Circular Flow of Income Model of the economy?
(a)
The blue line (outer flow) of the Circular Flow of Income represents the flow of WHAT between Households and Businesses?
Income
Outputs
Consumption
Economic resources
What 'resource(s)' does the Business sector provide to Households?
Economic Resources (land, labour, capital, enterprise)
Outputs (goods and services)
Consumption
Income
The inner RED line represents the flow of 'what' within the economy?
Money
Resources
Workers
Spending
What does the Household sector provide to the Business sector?
Land
Labour (workers)
Capital (money)
All of the above
None of the above
When a Household receives 'wages for labour' from the Business sector, this is called
Consumption spending
Economic resources
Outputs
Income
When a Household provides LAND to the Business sector, this 'land' is called?
Goods and Services
Economic Resource
Consumption
Income
When a household pays for goods and services, this is called
(a)
In the Circular Flow of Income Model, which 'sector' does this image represent?
Which 'sector' in the Circular Flow of Income Model does this image represent?
Household sector
Government sector
Business sector
Customer sector
The Household sector provides this 'resource' to the Business sector. What resource does this picture represent?
Land
Capital
Goods and services
Labour (workers)
Explain how a Business could be both a consumer and a producer?
William Ross High School is a business and provides 'what' to the household sector?
Product - education
Service - education
resource
income
Which sector does this picture belong to?
Household sector
Consumption
Goods and Services
Business sector
Tell me how 'students' contribute to the economy?
Vets, Doctors, Schools, and the Police are all considered to be in the Business Sector because they provide?
Goods or services
Income
Resources - land and labour
Consumption spending
In the picture, which person is the Producer?
The girl
the guy
none of them
both of them
How do consumers satisfy their wants and needs?
Outputs - provide goods and services
Consumption - pay for goods & services
Income - receive wages for working
Economic resources - provide land and labour
Derek is a mechanic, he fixes cars for his clients. In the 2 Sector Circular Flow of Income Model of Income, he would be considered a ?
Consumer - buying goods or services
Household sector
Business sector
Producer - providing a service
Describe how the Household sector earns INCOME from the Business Sector?
Every household in the economy is involved in 'consumption spending' . Describe a situation in which shows your family as 'consumption spenders'?
In the Circular Flow of Income, two sector Model, is one Sector (Households or Businesses) more important than the other? Explain why or why not.
What is an economy?
Rate your Understanding of the Circular Flow of Income Model of the 2 Sector Economy.
Thumbs Up. I can answer most questions correctly
Thumbs sideways. I can answer some of the questions correctly
Thumbs Down. I cannot answer any questions correctly
Which of the following are considered INCOME?
goods and services
rent, wages, interest and profit
land, labour, capital, enterprise
all of the above
Buildings or block of land provided by the Household sector are classified as?
Economic resources
Income
Consumption spending
Goods and services
Explain which sector our school operates in?
When a household receives Income (wages) for working. Where does this income flow come from?
the bank
customers
Business sector
Household sector
There are FOUR Economic resources. I can tell you about Land, Capital (money), and Enterprise. Which one is missing
(a)
