\( \begin{array}{ll}\text { 3.2.1 } & \text { What does the above diagram represent? } \\ \text { 3.2.2 } & \text { Name one type of flow in the economy. } \\ \text { 3.2.3 } & \text { Identify the participant labeled } A \text { in the above diagram. } \\ \text { 3.2.4 } & \text { Describe the concept of a closed economy. } \\ \text { 3.2.5 } & \text { Distinguish between factor market and product market. } \\ \text { 3.2.6 } & \text { Briefly explain the interaction between households and } \\ \text { businesses. }\end{array} \)

**3.2.1** The diagram shows the flow of money and goods between households and businesses in an economy. **3.2.2** One type of flow is the **Real Flow**, which involves the movement of goods and services. **3.2.3** Participant A is **Households**, who provide resources to businesses and receive income in return. **3.2.4** A **Closed Economy** is one that doesn't trade with other countries, relying solely on domestic production and consumption. **3.2.5** The **Factor Market** deals with resources (like labor and capital), while the **Product Market** handles the goods and services produced. **3.2.6** Households supply resources to businesses and buy their products, creating a continuous flow of income and goods within the economy.