Circular Flow of Income Quiz
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Questions and Answers

In the context of the circular flow of income, which sector is responsible for providing factor payments to households?

  • Business sector (correct)
  • Government sector
  • Household sector
  • Foreign sector
  • In the circular flow of income, which sector represents the households' consumption of goods and services?

  • Household sector (correct)
  • Financial sector
  • Foreign sector
  • Government sector
  • Which of the following is not a phase of the circular flow of income?

  • Investment in capital goods (correct)
  • Consumption of goods and services
  • Government expenditure on public goods
  • Production of goods and services
  • Which of the following is not a component of national income?

    <p>Personal savings</p> Signup and view all the answers

    What phase of the circular flow of income involves households spending on goods and services produced by firms?

    <p>Consumption phase</p> Signup and view all the answers

    Which of the following is not considered a factor payment in the circular flow of income?

    <p>Government subsidies</p> Signup and view all the answers

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