2.4.1

Question 1

Circular flow of income

Answer 1

An economic model that illustrates how Monet and goods/services flow through an economy

Question 2

Economic agents of the circular flow of income

Answer 2

Households, firms, the government and the foreign sector

Question 3

Income

Answer 3

Refers to the flow of money received by an individual or household over time, such as wages or interest

Question 4

Wealth

Answer 4

The stock of assets owned by a person, including property, stocks, and savings.