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.
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In a nutshell, the circular flow model is a fundamental concept in economics that illustrates how money and goods move through an economy. Households provide factors of production, such as labor, to firms and in return, they receive wages which they spend on goods and services, creating a continuous cycle that keeps the economy ticking. Understanding this flow is crucial for analyzing how different components of the economy interact with each other! When tackling these questions, take a moment to visualize the circular flow model. Mapping out the relationships between households, firms, and the government can help clarify their roles. For instance, remember that while households provide labor, it's firms that produce goods and services, and the government plays a regulatory role. This visual approach can help avoid the common mistake of picking an answer that seems partially correct without fully grasping the overall picture!
