Question 1
Injections include:
A.
G, I and X B.
S, T and M C.
GDP per capita D.
C only
Question 2
In an open economy the circular flow includes:
A.
Only savings B.
Only investment C.
Imports and exports D.
No government
Question 3
National income measures:
A.
Assets at a point in time B.
Total income in a period C.
Only tax D.
Only exports
Question 4
What is meant by income?
A.
Output equals expenditure equals income. B.
Flow — wages, rent, interest, profit. C.
Includes imports and exports. D.
S, T, M leak from the circular flow.
Question 5
What is meant by circular flow?
A.
Flow — wages, rent, interest, profit. B.
Includes imports and exports. C.
Model of income flows between households and firms. D.
Total income in the economy in a period.
Question 6
Withdrawals include:
A.
Transfer payments B.
G, I, X C.
Exports only D.
S, T and M
Question 7
What is meant by closed economy?
A.
No foreign trade in the basic model. B.
Model of income flows between households and firms. C.
Stock — assets owned at a point in time. D.
Higher assets may raise consumption.
Question 8
What is meant by national income?
A.
Total income in the economy in a period. B.
Stock — assets owned at a point in time. C.
Output equals expenditure equals income. D.
Higher assets may raise consumption.
Question 9
What is meant by wealth?
A.
Stock — assets owned at a point in time. B.
Model of income flows between households and firms. C.
Higher assets may raise consumption. D.
Output equals expenditure equals income.
Question 10
What is meant by withdrawals?
A.
Stock — assets owned at a point in time. B.
Model of income flows between households and firms. C.
S, T, M leak from the circular flow. D.
Total income in the economy in a period.
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