Writw : When answering Section A - short question, it is important not to rush but to read the questions carefully and to make sure you understand what the question is asking. Always remember one alternative is completely wrong, one is nearly correct and one is totally correct. It is easy to eliminate the completely wrong answer, but it you do not read the question carefully the nearly correct answer will also appear correct. The answer will NEVER be two options. Only ONE option is correct. Your answer will immediately be marked incorrect if you write TWO options. QUESTION 1: 1.1 questions, Choose the answer and write only the letter (A-D) next to the question number. 1.1.1 In the circular flow model ... A. households supply goods in the goods market. B. households supply labour to firms through the factor market. Short Questions C. households are sellers in the factor market. D. businesses are sellers in the factor market. 1.1.2 The role of the government in the circular is to ... A. collect surplus money in the form of taxes. B, balance the cycle. C. supply private goods and services. D. demand goods and services from households. 1.1.3 The firm's presence in the circular flow is aimed at ... A. selling goods on the product market. B, producing publio goods. C buving factory services.

When answering Section A - short questions, it is important not to rush but to read the questions carefully and to make sure you understand what the question is asking. Always remember one alternative is completely wrong, one is nearly correct, and one is totally correct. It is easy to eliminate the completely wrong answer, but if you do not read the question carefully, the nearly correct answer will also appear correct. The answer will NEVER be two options. Only ONE option is correct. Your answer will immediately be marked incorrect if you write TWO options. Now, let's analyze the questions one by one: ### QUESTION 1: #### 1.1.1 In the circular flow model ... - **A.** households supply goods in the goods market. - This is incorrect because households do not supply goods; they demand goods. - **B.** households supply labour to firms through the factor market. - This is correct. Households provide labor to firms in exchange for wages in the factor market. - **C.** households are sellers in the factor market. - This is nearly correct, as households do sell labor, but it does not fully capture the essence of the circular flow model. - **D.** businesses are sellers in the factor market. - This is incorrect because businesses are buyers in the factor market. **Correct Answer: B** #### 1.1.2 The role of the government in the circular flow is to ... - **A.** collect surplus money in the form of taxes. - This is partially correct, but it does not encompass the full role of the government. - **B.** balance the cycle. - This is vague and not a specific role of the government in the circular flow model. - **C.** supply private goods and services. - This is incorrect as the government typically provides public goods and services. - **D.** demand goods and services from households. - This is correct. The government does demand goods and services from households. **Correct Answer: D** #### 1.1.3 The firm's presence in the circular flow is aimed at ... - **A.** selling goods on the product market. - This is correct. Firms sell goods in the product market to households. - **B.** producing public goods. - This is incorrect as firms typically produce private goods. - **C.** buying factory services. - This is nearly correct, but it does not fully capture the primary aim of firms in the circular flow model. **Correct Answer: A** ### Summary of Answers: 1.1.1: B 1.1.2: D 1.1.3: A Make sure to write only the letters next to the question numbers as instructed.