Circular flow diagram?

Question

the four sector circular flow model,

Answer 1

People engage in exchange to attain goals. Exchange is not just take; in order to get, one must give. People must do things that they do not want to do in order to get things that they desire. The unpleasant part of this process is work and production, and the pleasant part is consumption. Work and production are not pursued for their own sakes, but only because without them we cannot consume. This division of economic life is illustrated below in what Frank Knight called the Wheel of Wealth, but which is now more commonly known as circular flow.

The circular flow diagram divides the economy into two sectors: one concerned with producing goods and services, and the other with consuming them. Resources are converted into goods and services by business, and in this transformed state travel back to consumers. Money flows in the opposite direction. These flows involve two markets in which exchange takes place: the resource or factor market in which business buys resources, and the goods and services market in which business sells goods.