3 Questions
What is the main purpose of the circular flow model in an economic system?
To illustrate the flow of money, goods, and services
Why is the circular flow model also known as the circular flow of income?
As it highlights the movement of money in the economy
In the circular flow model, what is tracked to measure a country's national income or GDP?
Movement of money between sectors
Test your knowledge of the circular flow model in economics with this quiz. Learn about the movement of money, goods, and services between sectors and how it impacts a country's national income and GDP.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
