three sector flow model

Question 1

What are the two markets

Question 2

types of flow

Answer 2

income, expenditure and production flow

Question 3

Flow 1

Answer 3

flow of resources

Question 4

Flow 2

Answer 4

flow of all incomes paid

Question 5

Flow 3

Answer 5

flow of expenditure on g/s

Question 6

Flow 4

Answer 6

flow of production of g/s

Question 7

Limitations of the model

Answer 7

• we don’t understand human behaviour or how somethings are not included

Question 8

how does the model go?

Answer 8

flow 1 –> private —> flow 2—> consumers—>flow 3 —> government —> flow 3 —> private—> flow 4 —- consumer —> (to start)