Circular Flow Of Income Flashcards
1
Q
What are the factors of production?
A
- Land
- Labour
- Capital
- Enterprise
2
Q
What are the sectors of the economy?
A
- Households
- Firms
- Financial
- Government
- Foreign
3
Q
What are the stages of the circular flow of income?
A
- Households pay firms in land, labour and capital.
- Firms pay Households with money for their services.
- Firms pay households with goods and services.
- Households pay firms with money for their products
- e.t.c
