LU1 Economics

The three major flows in a macro economy are

• Total production, total investment and total spending

• Total production, total income and total spending

• Total production, total spending and total savings

In the circular flow of income and spending

• Investment results in a decrease in the volume of the income flow

• mports result in an increase in the volume of the income flow

• Savings result in a decrease in the volume of the income flow

The distinction between a flow and a stock is that

• A flow measures monetary values, while a stock measures real values, such as factory output;

• A flow measures an account on a monthly basis, while a stock measures it on an annual basis

• A flow measures a quantity over a period of time, while a stock measures a quantity at a specific moment.

Which of the following represent injections into the circular flow of income and spending?

• Government spending and imports;

• Imports and saving.

• Exports and investment

Explain the difference between Consumption spending and Investment spending

Explain the difference between A closed economy and an open economy

Explain the difference between Exports and Imports

Explain what is meant by the term, “Transfer Payment”. Is a transfer payment an injection into the circular flow or a withdrawal from the circular flow? Explain your answer by means of an example

What is the current rate of unemployment in South Africa?

• 25.6%

• 34.5%

• 40.2%

Did you guys enjoy the quizz? Should we do it more often?

• Yes, I find it exciting and I learn in a fun way

• No, waste of time