The Circular Flow of Income Flashcards Preview

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Flashcards in The Circular Flow of Income Deck (11):
1

what is the circular flow of income?

a graph depicting the flow of money.

2

what money is taken from households to government?

taxes

3

what money is taken from government to a household?

transfer payments

4

what money is taken from government to firms?

subsidies

5

what money is taken from firms to government?

taxes

6

what money goes from households to firms?

goods and services

7

what money goes from firms to households?

wages

8

what is the name of money that leaves the cycle?

a leakage

9

give an example of a leakage.

imports

10

what is the name of money that enters the circle?

injections

11

give an example of a leakage.

exports.