ECONOMICS
GDP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Resources
|
|
|
Laws
|
|
|
Goods and services
|
|
|
Money
|
Detailed explanation-1: -The 3 major flows in an economy are: Total production. Total income. Total spending.
Detailed explanation-2: -Flows from households and firms to government are in the form of taxes. The income the government receives flows to firms and households in the form of subsidies, transfers, and purchases of goods and services.
Detailed explanation-3: -The circular flow model demonstrates how money moves from producers to households and back again in an endless loop. In an economy, money moves from producers to workers as wages and then back from workers to producers as workers spend money on products and services.
Detailed explanation-4: -The circular flow model highlights the “flows” within the economy-the flow of economic resources, goods and services, and the flow of money.