Circular Flow Formative
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by Stephanie Foy
| 3 Questions
Note from the author:
Circular Flow Model
1
1
Examine the image above. Real flow (1) to flow (2) represents
A: payment for goods and services
B: land, labor, capital, and entrepreneurial resources
C: goods and services
D: income, wages, rent, profit
2
1
Using the same image from above, real flow (3) to real flow (4) represents
A: payment for goods and services
B: land, labor, capital, and entrepreneurial resources
C: goods and services
D: income, wages, rent, and profit
3
1
Using the same image as before, which of the following would best describe real flows (5) to (6) and (7) to (8)?
A: goods and services
B: labor
C: investment
D: money
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