The document is a quiz about the circular flow of income model which describes the reciprocal flow of income between producers and consumers. It discusses key aspects of the model including the roles of firms and households, the significance of studying the model, and different approaches to measuring national income such as the output, income, and expenditure approaches.

1. QUIZ ABOUT
CIRCULAR FLOW OF
INCOME

2. • It refers to a simple economic model
which describes the reciprocal
circulation of income between
producers and consumers?
ANS: CIRCULAR FLOW OF INCOME

3. • Provide consumers with goods and services in
exchange for consumer expenditure and "factors
of production" from households?
ANS: FIRMS

4. • Give the four significance of study
of circular of income
ANS: Measurement of National Income
Knowledge of Interdependence
Unending Nature of Economic Activities
Injections and Leakages Reference

5. • It focuses on finding the total output
of a nation by directly finding the total
value of all goods and services a
nation produces?
ANS: OUTPUT APPROACH

6. • It equates the total output of a nation
to the total factor income received by
residents or citizens of the nation?
ANS: INCOME APPROACH

7. • It is basically an output accounting
method and it focuses on finding the total
output of a nation by finding the total
amount of money spent?
ANS: EXPENDITURE APPROACH

8. • It is often used as a measure of a
person's welfare?
ANS: GDP PER CAPITA (PER PERSON)