U1 AOS1 - Lesson 5 - Circular Flow Model Flashcards
1
Q
The three sectors of the circular flow model
A
Household, Business, Government
2
Q
True/False: Households only provide labour as a resource to the business sector
A
False: households provide resources to the business sector in the form of labour, natural or capital resources in return for an income.
3
Q
The first flow between Households and Businesses
A
The flow of resources (natural, labour and capital)
4
Q
The second flow of the circular flow model from Businesses to Households
A
The flow of income (wages, rent, dividends, etc)
