Circular flow: Account Aggregates and the Multiplier

Question 1

Household sector

Answer 1

They are the main consumers of the factors of production
Households on factors of production
These factors are sold onto the factor market

Question 2

Firm/Business Sector

Answer 2

They purchase factors of production to produce goods and services
Businesses sell these products to households and the government in return for payment

Question 3

Government state/Public sector

Answer 3

Regional,provencial and national goverment
Provides households and business with merit goods

Question 4

Government state/Public sector

Answer 4

Regional,provencial and national goverment
Provides households and businesses with merit goods

Question 5

Foreign Sector

Answer 5

These are the flow of goods and services in a country
Paid by the government , businesses and households

Question 6

National account conversions

Answer 6

National income figures are expressed as basics prices, market prices and factor prices depending on the GDP approach

tax on product:Tax levied per unit of product includes VAT
Tax on productions: This tax is not linked to a specific good
Subsidies on product: Direct subsidies on a product like a break
Subdies on Production:It is notlinked to any specifc products