Why do resources, goods and services flow in a circular flow model

1.     in what kind of government does a small group have a firm control over a country?  

What something thats on the news, and is going on currently?

Who ever answers first gets ! trade in the vedic age led to a.the rise of kingdoms because of the importance of controlling land and long-distance travel routes b.the building of an extensive system of roads because of the difficult terrain c.the creation of a large banking class because of the need to exchange different currencies d.the development of a centralized government that controlled the economic decisions of its people