1.4: The Circular Flow of Income and Expenditures
- Read this section on the Circular Flow of Economic Activity. Learn about the how the circular flow model provides a link between the demand and supply in the product and factor markets.
- Watch this lecture about the circular flow of income and expenditures in a closed economy. Note that goods and services are exchanged in product markets and factors of production are exchanged in factor markets.
- Receive a grade
Take this quiz to check your understanding of the circular flow model. You should understand the kinds of actors in an economy, and how money can transfer among them.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.