IB skill practice

Explain macroeconomic objectives and circular flow

Economics SL skill with original exam-style diagram, data-response, and evaluation seeds.

Paper 1, Paper 2 5 marks Difficulty 4

Explain circular flow

A circular flow diagram in a Melbourne Economics data-response extract shows households providing factors of production to firms and receiving income. Explain the basic flow. Enter the answer and choose the interpretation that best matches the economic evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.