Circular Flow of Income Quiz
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Questions and Answers

Which of the following is considered a fundamental indicator of the financial scale of a nation?

  • Investors
  • Public sector
  • Households
  • Companies (correct)

Who sells human capital, money, equipment, and land to investors or businessmen?

  • Households (correct)
  • Public sector
  • Companies
  • Specialists

What is the role of the government in the circular flow diagram?

  • To provide infrastructure
  • To maintain peace (correct)
  • To collect taxes
  • To provide subsidies

How does the government obtain revenues in the circular flow diagram?

<p>By collecting taxes (A)</p> Signup and view all the answers

What are some of the ways the government returns resources to the population in the circular flow diagram?

<p>By providing subsidies (C)</p> Signup and view all the answers

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