Circular flow diagram.?

Question

Identify the parts of the model that corresponds to the flow of goods and services and the flow of dollars for each of the following activities:

a) Sam pays a shopkeeper $1 for liter of milk.

b) Sally earns $4.50 per hour working at a fast food restaurant.

c) Serena spends $7 to see a film.

d) Staurt earns $10000 from his 10% ownership of Acme Industrial.

Answer 1

a. is the flow of income from house hold to Business sector and would be classified as national expenditure

b. is the flow of income from business sector to house hold for the payment of the factors of production (wages for labour) and would be classified as national income

c. is again the flow of income from house hold to Business sector and would be classified as national expenditure

d. is again is the flow of income from business sector to house hold for the payment of the factors of production (profit for entrepreneur) and would be classified as national income