Circular Flow Of Income (L5) Flashcards
1
Q
Injections
A
Investment
Gov spending
Exports
2
Q
Withdrawals
A
Short term memory
Savings
Taxes
Imports
3
Q
In this model, what factors aren’t considered?
A
Foreign trade (closed economy) Government
4
Q
What do households own
A
Wealth of the nation
Stock of land, labour and capital used to produce goods + services
5
Q
National output
A
Value of flow of goods and services from firms to households
6
Q
National expenditure
A
Value of spending on goods and services
7
Q
National income
A
Value of income paid by firms to households in return for the factors of production
