2 - National Income Flashcards
(8 cards)
1
Q
What is national income?
A
The monetary value of the flow of output produced din an Econ over period of time
2
Q
How do households earn their income?
A
By selling the FOPs to firms (labour)
3
Q
What does the financial sector do?
A
Lends income saved to businesses to invest
4
Q
What does the gov sector do?
A
- they take some of the income out as tax (withdrawals)
- put some in (injections)
5
Q
What does the foreign sector do?
A
- some income flows out to other countries when imports are purchased
- some comes in from exports
6
Q
What is wealth?
A
Its a stock concept - the value of assets held
Assets include:
- income saved
- property owned
- money held in pension funds
7
Q
What is income?
A
A flow of money going to FOPs
Including:
- wages and salaries
- rent
- profits
- interest paid
- people receiving benefits
8
Q
Is wealth or income more evenly distributed?
A
Income is more evenly distributed than wealth
