Chapter 16

Leakages from the circular flow of income refer to

• money flowing into the system

• money flowing out of the system

• government spending

• Exports and investment

Injections to the circular clow of income refer to

• income generated in parallel markets

• money flowing out of the economic system

• money flowing into the economic system

• Savings, taxes, imports

GNI includes which of the following that is EXCLUDED by GDP

• government spending

• taxes

• earnings from citizens living abroad

• investment

GDP= C + I + G +(X-M) is known as the

• equilibrium national income method

• the expenditure approach

• the income approach

• the output method

The diagram that illustrates the fluctuations in the level of economic activity over time is

• the ciruclar flow of income

• The Keynesian multiplier

• The Marshall- Lerner Condition

• the business cycle

What are the rewards to the four factors of production?

• Land, labor, capital, enterprise

• rent, interest, wages, and salaries

• interest, rent, profits and wages

• wages, interest, rent and dividends

Which of the following is NOT a metric used by teh OECD to calculate the Better Life Index?

• Civic Engagement

• Housing

• Inflation

• Work- life balance

What is the name of the phase in a business cycle that occurs at the lowest point?

• Trough

• Peak

• Expansion

• Contraction

Which cannot be inferred from a country's per capita GDP figures?

• Average incomes

• Income distribution

• Production per person

• Standards of living

Which is NOT a measurement of national income?

• Expenditure method

• Income method

• Inflation method

• Output method