Draw the diagram of the three-sector circular-flow model with a government sector (4%) and properly label it (6%). Then, explain how households, firms, and governments interact to sustain a mixed economy (10%).

Note:

(i) Draw the three-sector circular-flow diagram which was shown on the whiteboard in the

recorded video. To avoid losing points, do not draw the diagram in our required textbook because it does not have all the pieces of information that are being tested on the exam.

(ii) To earn the maximum point, your explanation of how the sectors work must be written (not copied from a textbook or online) to demonstrate that you have a full understanding of the topic.