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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?
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?
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?
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?
Which of the following is not a component of national income?
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What phase of the circular flow of income involves households spending on goods and services produced by firms?
What phase of the circular flow of income involves households spending on goods and services produced by firms?
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Which of the following is not considered a factor payment in the circular flow of income?
Which of the following is not considered a factor payment in the circular flow of income?
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