GWC N5 Economics National Income and Circular Flow 1

This occurs when there is an increase in total output of goods and services over a one year period of time using the same or fewer resources.

• National Income
• Econmic Growth
• Circular Flow of Income

This is the value of all goods and services produced in the economy in a year. It measures the economic performance of a country.

• National Income
• Econmic Growth
• Circular Flow of Income

The movement of expenditure, income and output around the economy.

• National Income
• Econmic Growth
• Circular Flow of Income

Which is not a reward to the factor inputs?

• Rent
• Wages
• Savings
• Interest
• Profit

Which is not a leakage from the circular flow?

• Savings
• Consumption
• Taxation
• Imports

Which is an inflow to the circular flow?

• Governement spending
• Savings
• Taxation
• Imports
• Exports

The closed economy assumes that the expenditure of buyers (households) becomes income for sellers (firms).

• True

• False

The closed economy assumes there is no government involvement.

• True

• False

In a closed economy it is assumed that households spend some of their income (Y) on goods and services or consumption (C) and saving (S) some income too.

• True

• False