Circular Flow

Question 1

gives labour to the resource market in exchange for income. They also buy G&S by giving money to the product market.

Answer 1

Households interaction with businesses

Question 2

Hires employees (labour) from the resource market and gives them money (cost) in exchange for their labour. And produce G&S in exchange for money (revenue).

Answer 2

Businesses interaction with households

Question 3

Collects taxes from Households and businesses in exchange they give public G&S and to households they give welfare like Centrelink and give Subsides to businesses.

Answer 3

Gov. interaction with Households and Businesses