What are households in the circular flow of income?

Group of people that live together and make economic decisions

What are business enterprises?

Units that employ the factors of production

What does savings represent in the circular flow?

Difference between income and spending

Movement of physical goods, services and factors of production

What is the product market?

Where goods are bought and sold

What is a nominal flow?

Movement of money in the circular flow

Goods that a country produces and sold to the rest of the world

Factors that decrease the circulation of spending

Factors that increase the circulation of spending

Quiz Flashcards True or False Match Game Study Guide Listen Mode

Circular Flow of Income Concepts

14 questions · True or False mode

You are studying Circular Flow of Income Concepts, a Economics study set with 14 practice questions. Quickly decide if statements are true or false to reinforce understanding. Work through every question in True or False mode, then try another format to reinforce what you've learned.