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Worksheetscircular flow of income
Total questions: 19
Worksheet time: 9mins
What do households provide to factor markets?
land, labour, capital
firms that sell goods and services to households
The missing label in the diagram is...?
Government Sector
Financial Sector
Households
Firms
The missing label in the diagram is...?
Government Sector
Financial Sector
Households
Firms
The missing label in the diagram is...?
Government Sector
Financial Sector
Households
Firms
The missing label in the diagram is...?
Government Sector
Financial Sector
Households
Firms
What is the role of firms?
Investments in order to make more money
Provide public goods and services
Buy resources for production from households in exchange for those resources
Earning income and spending it on goods and services
What are the 3 leakages in the Circular Flow Income Model?
Financial Sector, Government Sector and Overseas Sector
Savings, Taxation and Imports
Savings, Taxation and Exports
Investment, Government Spending & Exports
As a general rule, if the economy experiences a serious imbalance between leakages and injections where there are a great deal more leakages than injections this is where the economy may experience:
a recession
growth in economic activity
an economic boom
low unemployment
This studies economy-wide phenomena.
Macroeconomics
Microeconomics
300 handsome oppa enrol at the University of Macao. What effect will this have on the Macau’s economy?
Everyone go to the University of Macao to study
Cause the injection of exports to increase, leading to an expansion
Cause the injection of exports to decrease, leading to an expansion
Cause the leakage of imports to decrease, leading to an expansion
Amy decides to fund improvements to Macau Olympic sport stadium, renaming it Princess Amy Park. What effect will this have on the economy?
Everyone knows Amy now
Cause an injection of Government Expenditure to increase therefore an expansion
Cause an injection of Investment to increase therefore an expansion
Cause an injection of Investment to decrease therefore an expansion
The Macao Government decides to reduce the income tax rate by 10% due to COVID-19. What effect will this have on the economy?
Cause the leakage of taxation to increase therefore a contraction
Cause the leakage of taxation to decrease therefore an expansion
Cause an injection of government expenditure to increase therefore an expansion
Cause an injection of government expenditure to decrease therefore a contraction
Ms Wong gets charged income tax. Which flow does this belong to?
Savings
Providing an income to Households
Taxation
Government Expenditure
Koey purchases a new iPhone. Which flow is this?
Consumer expenditure
Production of goods and services
Providing an income to Households
Selling economic resources to Firms
Miko opens a new bank account and receive a debit card. Which flow does this belong to?
Bank Overdraft
Providing an income to Households
Consumer Expenditure
Savings
Minnie’s Pizza restaurant purchases a new van for delivery. Which flow is this?
Production of goods and services
Investment
Purchasing of economic resources from Households
Car accident
